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What is the price per unit of super after further processing

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Reference no: EM132943650

Problem - A company has two products, Mega and Super, which emerge from a joint process with a total joint cost of $65,000. Data for the product Super are shown below:

Produced from the process 3,000 units

Allocated share of joint costs $39,500

Cost of processing further $48,000

Price per unit

- at split-off point $23

- after further processing ?

Required - What is the price per unit of Super after further processing that would make the company indifferent between processing further or selling at the split-off point?

Reference no: EM132943650

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