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Which product or products should be at the split off point

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Question - Buzz Lightyear has a production facility with joint costs of $230,000 in total. At the split off point there are three products Jelly; Pudding and Juice. Jelly has a sales value of $25000; Pudding has a sales value of $40000 and Juice has a sales value of $17500.

All products can be sold as it this point. However, there are opportunities to process all three products further at the following costs: Jelly $42000; Pudding $28000 and Juice $12000.

This will increase the sales values of the products to: Jelly $95000; Pudding $70000 and Juice $$27000.

Required - Which product or products should be at the split off point and which product or products should be processed further?

Reference no: EM133094409

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