Business
Business, 08.05.2021 02:20, mroueh21

Johnson Inc. produces two products, X and Y from a single joint process, costing $10,000, which is allocated evenly to each product. Johnson Inc. will produce 20,000 units of each product. Product X can be sold in its current format for $20 per unit. Product X incurs $12 of variable costs per unit. Product Y can be sold in its current format for $25 per unit. Product X incurs $12 of variable costs per unit. Alternatively, Products X and Y can be processed further and then resold. Product X can be processed further into 8,000 units of Product X1. Product Y can be further processed into 10,000 units Product Y1. - Product X1 would sell for $30 per unit and cost a total of $30,000. - Product Y1 would sell for $35 per unit and cost a total of $120,000. Based on the information provided, what is the optimal production plan for Johnson Inc

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Johnson Inc. produces two products, X and Y from a single joint process, costing $10,000, which is a...

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