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Which products should be processed further or not

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Lido manufactures A and B from a joint process cost = $20,000. Six thousand pounds of A can be sold at split-off for $18 per pound or processed further at an additional cost of $10,000 and then sold for $20. Eight thousand pounds of B can be sold at split-off for $14 per pound or processed further at an additional cost of $15,000 and later sold for $20.

Problem 1: Which products should be processed further or not? Why? Give the total dollar impact to income for each product based on your recommendation.

Reference no: EM132665648

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