Gloin LLC. produces two products that have a common joint product, Meta-1X. It costs Gloin...
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Gloin LLC. produces two products that have a common joint product, Meta-1X. It costs Gloin LLC $600 to produce Meta-1X which it can sell to other manufacturers for $925 each.
Instead of selling Meta-1X, Gloin LLC. can process it into two units of Omega-2K and one unit of Zeta-3E. Omega-2K sells for $300 per unit and Zeta-3E sells for $400 per unit. It costs $250 to further process Meta-1X into Omega-2K and Zeta-3E.
What is the financial advantage or disadvantage to processing ONE unit of Meta-1X rather than selling it at the split-off point?
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