Solution-Which products should be processed beyond

Which products should be processed beyond split-off point

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Reference no: EM13505177

Benjamin Company produces products C, J, and R from a joint production process.

Each product may be sold at the split-off point or processed further. Joint production costs of $95,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for last year follow:

			Additional sales values and costs if processed further
Product	Units Produced	Sales values at split-off	Sales values	Added costs*
C	6,000	$75,000	$100,000	$20,000
J	9,000	$70,000	$115,000	$36,000
R	4,000	$46,500	$55,000	$10,000

*All variable and traceable to the products involved.

Required:

Which products should be processed beyond the split-off point?

Reference no: EM13505177

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Which products should be processed beyond split-off point

Reference no: EM13505177

Reference no: EM13505177

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