The Tentacool Telecom Supplies makes products Tenta and Cool in a joint process from a single input, Hydra. During a typical production run, 50,000 units of Hydra yield 20,000 units of Product Tenta and 30,000 units of Product Cool at the split-off point. Joint production costs total ₱90,000 per production run. The selling price per unit for Product Tenta is ₱4 and for Product Cool is ₱3.80 at the split-off point. However, Product Cool can be processed further at a total cost of ₱60,000 and then sold for ₱7.00 per unit. If Product Cool is processed beyond the split-off point, the change in operating income from a production run (as compared to selling Product Cool at the split-off point) would be.. Show solution Group of answer choices ₱10,000 decrease ₱96,000 increase ₱36,000 increase ₱42,000 decrease
The Tentacool Telecom Supplies makes products Tenta and Cool in a joint process from a single input, Hydra.
During a typical production run, 50,000 units of Hydra yield 20,000 units of Product Tenta and 30,000 units of Product Cool at the split-off point. Joint production costs total ₱90,000 per production run.
The selling price per unit for Product Tenta is ₱4 and for Product Cool is ₱3.80 at the split-off point. However, Product Cool can be processed further at a total cost of ₱60,000 and then sold for ₱7.00 per unit.
If Product Cool is processed beyond the split-off point, the change in operating income from a production run (as compared to selling Product Cool at the split-off point) would be.. Show solution
Group of answer choices
₱10,000 decrease
₱96,000 increase
₱36,000 increase
₱42,000 decrease
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