Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split- off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for the current year are as follows:

Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000.
Required:
Which products should be processed beyond the split-off point?

Transcribed Image Text:

Units Produced 8,000 10,000 5,000 Allocated Joint Production Cost $32,000 40,000 20,000 Sales Value at Split-off $76,000 71,000 48,000 Product