Processing Further
Walters Company produces 15,000 pounds of Product A and 30,000 pounds of Product B each week by incurring a joint cost of $400,000.These two products can be sold as is or processed further.Further processing of either product does not delay the production of subsequent batches of the joint product.Data regarding these two products are as follows: To maximize Walters Company's manufacturing contribution margin,how much total separate variable costs of further processing should be incurred each week?

Question

Processing Further
Walters Company produces 15,000 pounds of Product A and 30,000 pounds of Product B each week by incurring a joint cost of $400,000.These two products can be sold as is or processed further.Further processing of either product does not delay the production of subsequent batches of the joint product.Data regarding these two products are as follows:  To maximize Walters Company's manufacturing contribution margin,how much total separate variable costs of further processing should be incurred each week?

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The Answer of Processing Further
Walters Company produces 15,000 pounds of Product A and 30,000 pounds of Product B each week by incurring a joint cost of $400,000.These two products can be sold as is or processed further.Further processing of either product does not delay the production of subsequent batches of the joint product.Data regarding these two products are as follows:  To maximize Walters Company's manufacturing contribution margin,how much total separate variable costs of further processing should be incurred each week?

Processing Further Walters Company Produces 15,000 Pounds of Product a and 30,000