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What is the financial advantage of further processing

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Question - Assume a company has two products-A and B-that emerge from a joint process. Product A has been allocated $24,000 of the total joint costs of $48,000. A total of 2,000 units of Product A are produced from the joint process. Product A can be sold at the split-off point for $16 per unit, or it can be processed further for an additional total cost of $13,100 and then sold for $25 per unit. What is the financial advantage (disadvantage) of further processing Product A?

Reference no: EM133090907

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