Answer:
a) Product G should be produced and sold
b) Net financial advantage $80
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>
<em>Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further . </em>
$
Revenue after split-off point
($9× 40 litres) 360
Revenue at the slit of point
($4 × 40) <u> (160)</u>
Additional income from further processing 200
Further processing cost ($3× 40) <u>(120)</u>
Incremental income from further processing <u> 80</u>
Incremental income from further processing = $80
a) The product F should be processed further and sold as product G. Doing so would increase the net income by $80.
b) Net advantage $80
<span>The research method that involves manipulating a variable in order to determine how it affects another variable (in a cause and effect relationships) is the experimental method. In this method, the experimenter would undergo several processes and along the way, he would manipulate the variables in order to see how it affects the other variable thus uncovering the cause and effect relationships of these variables.</span>
When people take money out of the bank, they have to pay them back with a little more and interest is why.<span />