Page 412 - PM Integrated Workbook 2018-19
P. 412
Chapter 15
E F G H
Incremental revenue
per litre 8 7 10 4
Variable cost of refining (5) (5) (5) (5)
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Additional contribution
from refining 3 2 5 (1)
Sell at
split-off
Units 2,000 500 5,000
Specific fixed costs (1,000) (2,000) (3,000)
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Additional profit from
refining) 5,000 (1,000) 22,000
Refine Sell at Refine
split-off
Total relevant profit from refining is $27,000
General fixed costs of refining are $30,000
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Total loss from refining $(3,000)
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None of the products should be further processed.
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