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Question - Motorola Manufacturing purchases trees from Cascade Lumber and processes them up to the split off point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of November:
Production: 100 trees produce
paper 60,000 sheets
pencil casings 60,000
Sales: paper 58,000 at $0.08 per page
pencil casings 55,000 at $0.20 per casing
Cost of purchasing 100 trees and processing them up to the split off point to yield 60,000 sheets of paper and 60,000 pencil casings is $8000.
Required - What is the sales value at the split off point of the pencil casings?
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