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Victoria Company Victoria Company Manufactures Three Products in a Joint Process Which

Question 102

Multiple Choice

Victoria Company
Victoria Company manufactures three products in a joint process which costs $25,000.Each product can be sold at split-off or processed further and then sold.10,000 units of each product are manufactured.The following information is available for the three products:

  Product  Sales Value at Split-off  Separable Processing Costs after Split-off   Sales Value at Completion
 A  $12  $9  $21
B 10  4  17
 C  15  6  19

Refer to Victoria Company.If Product A is processed beyond the split-off point,profit will:


A) increase by $210,000
B) increase by $120,000
C) increase by $ 90,000
D) remain unchanged

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