Kelp Company produces three joint products from seaweed. At the split-off point, three basic products...
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Kelp Company produces three joint products from seaweed. At the splitoff point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the splitoff point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows:
Required:
a Compute the incremental benefit cost of further processing to these products.
a Which products should Kelp process beyond the splitoff point?
b What is the selling price per pound of Sea Paste at the splitoff point at which the company is indifferent?
Complete this question by entering your answers in the tabs below.
Req A
ReqA
Req B
Compute the incremental benefit cost of further processing to these products.
Note: Negative amounts should be shown with a minus sign.
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