Lamar corporation has a joint process which produces three

Reference no: EM13601574

Lamar Corporation 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 $10,000. Other relevant data are:

Sales Value Separable Processing Sales Value
Product at Split-Off Costs After Split-Off at Completion
A $94,000 $28,000 $116,000
B 60,000 8,000 82,000
C 66,000 14,000 80,000

Required:
A) Which products should be processed further? Why?
B) If the Lamar Company maximizes profits, what is the operating income?

Reference no: EM13601574

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