Harris Corp The "Further Processing Costs" Consist of Variable and Avoidable Fixed

question 12

Essay

Harris Corp.manufactures three products from a common input in a joint processing operation.Joint processing costs up to the split-off point total $200,000 per year.The company allocates these costs to the joint products on the basis of their total sales value at the split-off point.Each product may be sold at the split-off point or processed further.The additional processing costs and sales value after further processing for each product (on an annual basis)are:

$\begin{array}{llll}&&& \text { Sales Value } \\&\text {Sales Value}&\text {Further}&\text {After Further}\\\text { Product }& \text { at Split-Off}& \text { Processine Costs}& \text { Processing}\\J & \$ 180,000 & \$ 60,000 & \$ 230,000 \\\mathrm{~K} & \$ 135,000 & \$ 105,000 & \$ 280,000 \\\mathrm{~L} & \$ 95,000 & \$ 85,000 & \$ 160,000\end{array}$

The "Further Processing Costs" consist of variable and avoidable fixed costs.

Required:

Which product or products should be sold at the split-off point, and which product or products should be processed further? Show computations.

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Definitions:

Cliques

Small, exclusive groups of people or friends, often formed within larger groups, characterized by shared interests and close personal relationships.

Tasks Efficiency

The effectiveness and productivity with which tasks are completed, often within a specified time frame.

Network Centralization

A measure of the extent to which interactions within a network are either concentrated around one or a few nodes or evenly distributed among all nodes.

Simple Tasks

Activities or missions that are straightforward, require minimal cognitive effort, and can be completed quickly.