Variable cost of processing x-47 into xylene

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Reference no: EM1376475

Product X-47 is one of joint products in a joint manufacturing process. Management is studying whether to sell X-47 at split-off point or to process X-47 further into Xylene. The subsequent data have been gathered:

Selling price of X-47

I. Variable cost of processing X-47 into Xylene.
II. The preventable fixed costs of processing X-47 into Xylene.
III. The selling price of Xylene.
IV. The joint cost of process from which X-47 is produced.

Which of above items are relevant in a decision of whether to sell X-47 as is or process it further into Xylene?

Reference no: EM1376475

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