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Business, 27.05.2020 21:00 bubbaforbes2005

Faustina Chemical Company manufactures three chemicals (TX14, NJ35, and KS63) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this chemical process are as follows: TX14 NJ35 KS63 Sales value at split-off point……………… $16,000 $12,000 $5,000 Joint costs allocated to product...………… $6,000 $15,000 $9,000 Sales value after further processing……… $20,000 $18,000 $10,000 Cost of further processing……………….. $5,000 $4,000 $2,000 For which product(s) above would it be more profitable for Faustina to sell at the split-off point rather than process further? Justify your answer with calculations.

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Faustina Chemical Company manufactures three chemicals (TX14, NJ35, and KS63) from a joint process....
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