Company has a joint process which produces three products

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Company has a joint process, which produces three products called A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year are $20,000. Other relevant data are:

Product Sales Value at split-off Separable Processing Costs After Split-Off Sales Value atCompletion

A $94,000 $28,000 $115,000

B 60,000 10,000 82,000

C 66,000 14,000 79,000

A) Which products should be processed further? Why?

B) If the Sealy Company maximizes profits, what is the operating income?

Reference no: EM13484759

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