Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material...
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Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $55,000 per ton, one-fourth of which is allocated to product 15. Six thousand one hundred units of product 15 are produced from each ton of clypton. The units can either be sold at the split-off point for $14 each, or processed further at a total cost of $9,200 and then sold for $20 each. Required: 1. What is the financial advantage (disadvantage) of further processing product 15 ? 2. Should product X15 be processed further or sold at the split-off point
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Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $55,000 per ton, one-fourth of which is allocated to product 15. Six thousand one hundred units of product 15 are produced from each ton of clypton. The units can either be sold at the split-off point for $14 each, or processed further at a total cost of $9,200 and then sold for $20 each. Required: 1. What is the financial advantage (disadvantage) of further processing product 15 ? 2. Should product X15 be processed further or sold at the split-off point 