Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
Yards | Sales price per yard at split-off | Disposal cost per yard at split-off | Further processing per yard | Final sale price per yard | |
X | 1,500 | $6.00 | $3.50 | $1.00 | $ 7.50 |
Y | 2,200 | 9.00 | 5.00 | 3.00 | 11.25 |
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Which products would be processed further?
A) only Product X
B) only Product Z
C) both Products X and Z
D) neither Product X or Z
Correct Answer:
Verified
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