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Unformatted text preview: E6-7 Profit before split off: Sale Sarco $200,000 Barco $300,000 Larco $400,000 Profit after split off: Sale Sarco $300,000 Barco $400,000 Larco $800,000 Cost $40,000 $60,000 $80,000 = Profit $160,000 $240,000 $320,000 - Cost $160,000 $149,000 $330,000 = Profit $140,000 $251,000 $470,000 Sarco has higher Profit before split off. Barco and Larco have higher Profit after split off. Sarco will be sold as is because it's profit before split off. Barco and Larco will be sold after split off as they have higher profits after split off, thus needs to be processed further. ...
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This note was uploaded on 09/20/2008 for the course ACC 349 taught by Professor Christie during the Spring '08 term at University of Phoenix.
- Spring '08