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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
EXERCISE 12–8 Sell or Process Further [LO7]
Morrell Company produces several products from processing krypton, a rare mineral. Material and pro- cessing costs total $30,000 per ton, one-third of which are allocated to the product merifulon. The meri- fulon produced from a ton of krypton can either be sold at the split-off point, or processed further at a cost of $13,000 and then sold for $60,000. The sales value of merifulon at the split-off point is $40,000.
Required:
Should merifulon be processed further or sold at the split-off point?
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