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Walters Company is considering producing 120,000 pounds of paperclips and 140,000 pounds of staples each month from their current production of grade A and grade B wiring. The following are the expenditures to date:
Required: 1) Should Walters Company sell their products in the marketplace on April 1st or on May 1st? What recommendation would you make to Walters Company? 2) What is the incremental monthly revenue (loss) for staples and paperclips? 3) How should the $450,000 of joint costs be accounted for in the further processing decision?
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