Hamilton, Inc

question 89

Multiple Choice

Hamilton, Inc. produces three products using a joint process which provides for $350,000 in joint costs. The products X, Y and Z can be sold at split-off or processed further and then sold. The production level for each product is 5,000 units. The following unit information is also available:

-In processing product Z further,

• A) incremental revenues will exceed incremental costs.
• B) profits will increase by $8 per unit.
• C) profits will decrease by $20,000.
• D) additional costs will be less than additional revenues.

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