Question S (of 5) Save &x; Exercise 7-13 Sell or Process Further [LO7-7 Wexpro,

Question

Question S (of 5) Save &x; Exercise 7-13 Sell or Process Further [LO7-7 Wexpro, Inc produces s several products from processing 1 ton of dypton, a are mineral Material and processing costs total $25,000 per ton one-fourth of which is ellecated to product Xns 7000 units of product X15 are produced om each tos of dypton The units can elther be sold at the spl-off point for $t3.00 eaoor processed futher at al c or $17.33each Requlred O Should te processed hurthe Process Futher L0? caps lock 90 commandoptn control option commond

Explanation / Answer

If Sold at split off point

Sales = $13 * 7000, $ 91000

- Cost alloacted = $6250

Profit = $84750

If sold after processing

Sales = $17.33 * 7000, $121310

- cost allocated = $6250

- Additional cost = $11000

Profit = $104060

Option A is correct, It should be further processed.

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