A company puts four products through a common production

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Reference no: EM13480698

A company puts four products through a common production process. This process costs $100,000 each year. The four products can be sold when they emerge from this process at the "split-off point", or processed further and then sold. Data about the four products for the coming period are:

		Unit Sales	Unit Sales
		Price per pound	price per pound
		At split off	After further	Additional processing
Product	Volume	Point	Processing	Costs
Singer	20,000 lb	28	42	400,000
Talker	10,000 lb	7	28	144,000
Walker	5,000 lb	36	36	120,000
Sayer	5,000 lb	18	18	40,000

Determine which products should be sold at the split-off point and which should be processed further.

Reference no: EM13480698

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