Business, 26.09.2019 23:30 hailenardos5

We will learn to prepare an analysis to identify whether a product should be sold at the split-off point or should be processed further. it is profitable to continue processing a joint product after the split-off point so long as the incremental revenue from such processing exceeds the incremental processing cost incurred after the split-off point. we will also understand that the joint costs incurred up until the split-off point do not affect such decisions. superware, inc. produces multiple products out of a common input. geratin is one such product, which has a sales value of $15,000 at the split-off point. joint costs allocated to geratin are $12,000. sales value of geratin increases to $25,000 after further processing, and this processing will cost $7,000. what is the net profit or loss if super ware processes the product further? a. ($3,000) lossb. $3,000 profitc. $20,000 profitd. $18,000 profit

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