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Mathematics, 10.04.2020 22:33 j8838

ABC Inc. processes one hundred pounds of raw material into 60 pounds of X and 40 pounds of Y. They use the Sales value at Split off to allocate the joint processing costs of $135. At split off, X is sold for $2.50 per pound and Y can be sold for $3.00 per pound or processed further into 30 pounds of YY (10 pounds are lost in the further processing) at an additional total cost of $60. Each pound of YY can then be sold for $6.00. What is the effect on income of further processing product Y into product YY

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