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What ottawas profit will increase by

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Ottawa Corporation produces two products from a joint process. Information about the two joint products follows:

                                                                                    Product X                                 Product Y

Anticipated production                                                     2,000 lbs                              4,000 lbs

Selling price per lb. at split-off                                                  P30                                      P16

Additional processing costs/lb after split-off (all variable)                 P15                                  P30

Selling price/lb after further processing                                       P40                                        P50

The cost of the joint process is P85,000.

Question 1: Ottawa currently sells both products at the split-off point. If Ottawa makes decisions which maximizes profit, Ottawas profit will increase by

Reference no: EM132576873

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