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What are relevant in the decision to dispose or sell pooz

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Reference no: EM132902359

In the manufacturing process of Drigo Company, an output called substance "pooz" is disposed of a waste. Recently, the Research Department has discovered a process to convert this waste to detergent. The following data are available:

a. Cost of disposal is P20.00 per liter.
b. Additional processing cost will be P6.00 per liter
c. Selling price of the new detergent is P14.00 per liter.
d. Joint costs to manufacture all products is P1.5 billion of which P250,000 can be allocated to "pooz"

Problem 1: What are relevant in the decision to dispose or sell "pooz" as detergent?

Reference no: EM132902359

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