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Question 1 (5 points) All amounts given are on a per batch basis Jones Company purchases potatoes from farm distributors at a price of $93.00, after which the potatoes are peeled, at a cost of $15, resulting in two intermediate products: Potato peels, that can be sold as food for pigs for $35 Peeled potatoes that can be sold as food for human consumption for $45. Instead of selling the potato peels as food for pigs, Jones can spend an additional $15 to turn the peels into organic nutrients that can be sold for $43. Instead of selling the peeled potatoes as is, Jones can spend an additional $24 to turn the potatoes into French fries and sell them for SBO. Required Assume Jones buys 100 batches of potatoes, based on the information above, what is the dollar amount of joint costs related to processing the 100 batches of potatoes? 100 x 93= 9300 100 X 13 =1500 10,800 10.800 b. What is the financial advantage (disadvantage) of processing the potato peels into organic nutrients (rather than selling them as food for pigs)? 35x100= 3500 43x100 = 41300 15x 100 - 1500 2300 - Disadvantage What is the financial advantage (disadvantage) of processing the peeled potatoes into french fries (rather than selling them as plain peeled potatoes)? 45x100=4500 Advantage 80 x 100 = 8000 24 x100 - 2400 5600 d. Assuming Jones processes the potatoes so as to recognize all financial advantages, what is Jones net income for the 100 batches

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