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Company X produces joint products Z1 and Z2. At split off point, products Z1 an...
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Company X produces joint products Z1 and Z2. At split off point, products Z1 and Z2 have a selling price of $500 and $200, respectively. Both products can be further processed and sold for higher prices: $1,000 and $1,000. There are additional processing cost of $600 for Z1 and $700 for Z2.
Which of the following is TRUE assuming that the company wants to maximize their operating income?
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