these answers are wrong Sell at Split-Off or Process Further Bozo Inc. manufactures two...
50.1K
Verified Solution
Link Copied!
Question
Accounting
these answers are wrong
Sell at Split-Off or Process Further Bozo Inc. manufactures two products from a joint production process. The joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pounds of HS compound. LTE can be sold at split-off for $55 per pound. HS can be sold at split-off for $12 per pound. A buyer of HS asked Bozo to process HS further into CS compound. If HS were processed further, it would cost $42,500 to turn 14,000 pounds of HS into 4,000 pounds of CS. The CS would sell for $56 per pound. Required: 1. What is the contribution to income from selling the 14,000 pounds of HS at split-off? X 2. Conceptual Connection: What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS? $X Should Bozo continue to sell the HS at split-off or process it further into CS? Feedback Check My Work 1. Calculate revenue of HS when sold at split-off for $11. 2. Calculate revenue to process further. Multiply sales price by pounds of CS. Subtract processing cost from revenue for contribution margin
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
