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Decision Making #2-Sell or Process Further Joint Product Decision Material Company processes cotton...

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Accounting

Decision Making #2-Sell or Process Further Joint Product Decision
Material Company processes cotton in a joint process that yields 2 joint products: Fabric and Yarn.
The sales value at split off are $360,000 for fabric and 300,000 for yarn. If the products are processed beyond split-off, the final sales value will be
$540,000 for fabric and $420,000 for yarn. Additional costs of processing are expected to be $120,000 for fabric and $102,000 for yarn.
Required:
Which products should be processed further or not? Why? Give the total dollar change in income for each product based on your recommendation. Make sure you show your work.
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