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A Company Puts Four Products Through a Common Production Process

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A company puts four products through a common production process. This process costs $100,000 each year. The four products can be sold when they emerge from this process at the "split-off point," or processed further and then sold. Data about the four products for the coming period are:
 Unit Sales  Unit Sales  Price per unit  Price per unit  Additional  at Split-Off  after Further Processing  Product ‾ Volume ‾ Point ‾ Processing ‾ Costs ‾ Stroller 20,000lb$28.00$42.00$400,000 Walker 10,0001lb7.0028.00144,000 Jogger 5,000lb36.0058.00120,000 Runner 5,000lb18.0022.0040,000\begin{array}{|c|c|r|r|r|}\hline &&\text { Unit Sales } & \text { Unit Sales } & \\&&\text { Price per unit } & \text { Price per unit } & \text { Additional }\\&&\text { at Split-Off } &\text { after Further }&\text {Processing }\\\underline{\text { Product }} &\underline{ \text { Volume }} &\underline{ \text { Point } }& \underline{\text { Processing }} &\underline{ \text { Costs }}\\\hline \text { Stroller } & 20,000 \mathrm{lb} & \$ 28.00 & \$ 42.00 & \$ 400,000 \\\hline \text { Walker } & 10,0001 \mathrm{lb} & 7.00 & 28.00 & 144,000 \\\hline \text { Jogger } & 5,000 \mathrm{lb} & 36.00 & 58.00 & 120,000 \\\hline \text { Runner } & 5,000 \mathrm{lb} & 18.00 & 22.00 & 40,000 \\\hline\end{array} Determine which products should be sold at the split-off point and which should be processed further.

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