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If a product can be sold at the split-off point for 200k and apportion 240k of the joint cost to it, we would make 40k loss.
But if the same product would be further processed for a cost of 800k and then sold for 980k, the result would be 20k loss (change in revenue +780k less additional costs of 800k)So, should we further process it to reduce loss?
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