What is the expected gross margin for stanford corporation


The Stanford Corporation produces three outputs: A, B and C from one input.The net-realizable-value of A at the split-off point is $200,000. The net-realizable-value of B at the split-off point is $400,000 and the net-realizable- value of C at the split-off is $50,000. Final sales values are $400,000, $600,000 and $50,000 for A, B and C respectively. However, these prices are subject to erratic change. The additional processing costs for A, B and C are $100,000, $150,000 and $0 respectively. Stanford produces 120,000 units of A, 120,000 units of B and 60,000 units of C. The total costs incurred up to the split-off point are $300,000 What is the expected gross margin for Stanford Corporation?

 

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the expected gross margin for stanford corporation
Reference No:- TGS070498

Expected delivery within 24 Hours