Reference no: EM131814063

Good Earth Products produces orange juice and candied orange peels. A 1,000-pound batch of oranges, costing $540, is transformed using labor of $40 into 110 pounds of orange peels and 280 pints of juice. The company has determined that the sales value of 110 pounds of peels at the split-off point is $340, and the value of a pint of juice (not pasteurized or bottled) is $0.4. Beyond the split-off point, the cost of sugar-coating and packaging the 110 pounds of peels is $60. The cost of pasteurizing and packaging the 280 pints of juice is $240. A 110-pound box of candied peels is sold to commercial baking companies for $610. Each pint of juice is sold for $1.67.