Solution-Which of QUIK company joint products should be

Which of QUIK company joint products should be processed

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Reference no: EM132849789

Question - QUIK Manufacturing Company Ltd produces two products from a joint process. Information about the two joint products is as follows:

Information	Product A	Product B
Budgeted production (in kg)	2000	4000
Selling Price per kg at split - off	$10	$20
Additional processing costs per kg after split-off (all variable)	$15	$30
Selling price per kg after further processing	$40	$50

The cost of the joint process is $90,000.

Required -

a) Which of QUIK company's joint products should be sold at split-off point? Please support your answer with the necessary calculations.

b) Which of QUIK company's joint products should be processed further? Support your answer with the necessary calculations.

c) The company currently sells both products at the split-off point. If the company makes decisions that maximises profits, by how much would the company's profits increase by?

Reference no: EM132849789

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Which of QUIK company joint products should be processed

Reference no: EM132849789

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