A company puts four products through a common production

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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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