Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material...
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Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $29,000 per ton, one-fourth of which is allocated to product X15. 8,000 units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $10.00 each, or processed further at a total cost of $11,000 and then sold for $13.33 each.
Required:
Should product X15 be processed further or sold at the split-off point?
Should be processed further.
Should be sold at the split off point.
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