Question

Two products, Oland VH, emerge from a joint process. Product Qi has been allocated $12,300 of the total Joint costs of $33.000


Two products, Oland VH, emerge from a joint process. Product Qi has been allocated $12,300 of the total Joint costs of $33.000. A total of 1,900 units of product Ol are produced from the joint process. Product Ol can be sold at the spilt-off point for $13 per unit, or It can be processed further for an additional total cost of $11,000 and then sold for $15 per unit. If product Q ls processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point? 

Multiple Choice 

$18,000 

$7,200 

$17,500 

$5,100

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