Question

) If product Light is processed further and sold, what would be the financial advantage (disadvantage) for Bodbbm177 Corporation compared with sale in its unprocessed form directly after the split-off point?

Answer 1

Answer: Disadvantage of -$5,800

Step-by-step explanation:

Incremental sales revenue if processed further and sold = (12 - 10) * 2,200

= $4,400

Additional cost = $10,200

Financial Advantage(Disadvantage) = Incremental revenue - Additional cost

= 4,400 - 10,200

= -$5,800