Walters company produces, Walters Company produces 15,000

Walters company produces

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Reference no: EM13946605

Walters Company produces 15,000 pounds of Product A and 30,000 pounds of Product Beach week by incurring a joint production cost of $400,000. Product B can be sold as is or processed further. Further processing does not delay the production of subsequent batches of the joint product. Data regarding these two products are as follows:

Prod A Prod B

Selling price per pound without further processing $12.00 $9.00

Selling price per pound with further processing ------- $11.00

Total separate weekly variable costs

of further processing -------- $45,000.

Should Walters sell Product B as-is or process it further?

What is the change to income of Walters decided to process further?

Reference no: EM13946605

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