Corrosion chemical co produces several chemical compounds

Reference no: EM13573160

Corrosion Chemical Co. produces several chemical compounds. Each compound can be sold at the split-off point or processed further. The following results apply to October 2012:

Compound	Sales Value at Split-off Point	Costs of Additional Processing	Sales Value After Additional Processing
Chem I	$59,600	$7,300	$74,400
Chem II	70,700	17,500	82,600
Chem III	46,700	6,200	55,500

Corrosion's manager was asked which products should be sold at the split-off point and which should be processed further. Complete the following analysis started by the manager.
A. Based on the following, what should they recommend?
B. What would total revenue be if they sell each of the chemicals at their most profitable point? (Points : 6)

Reference no: EM13573160

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