Company produces three joint products at the split offpoint

Reference no: EM13611901

Company produces three joint products. At the split offpoint three basic prodcuts emerge A,B, and C. each productcan be either sold at the split off point or be processed further. if they are processed further, the reultingproducts can be sold as a speciality. Cost and revenue infofollows:

Sales Value & Additional
Costsif Processed Further
Pounds Sales Value FinalSales Additonal
Product produced atsplit-off value cost
A......................................9,000 $60,000 $90,000 $35,000
B......................................4,000 80,000 160,000 50,000
C.......................................2,000 70,000 85,000 14,000
**At what price per pound would it be advanatageous for thecompany to sell B at the split-off point rather then process itfurther?

Reference no: EM13611901

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