Green Leaf produces three joint products from mint leaves. At the split-off point, three basic products emerge: Mint Tea, Mint Paste, and Mint Powder. Each of these products can be either sold at the split-off point or processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows:

Instructions

a. Which products should Green Leaf process beyond the split-off point?

b. At what price per pound would it be advantageous for Green Leaf to sell Mint Paste at the split-off point rather than process it further?

Transcribed Image Text:

Sales Value and Additional Costs If Processed Further Pounds Sales Value Final Sales Additional Produced at Split-Off Value Cost Mint Tea... 10,000 $ 80,000 $100,000 $30,000 Mint Paste. 5,000 100,000 180,000 60,000 Mint Powder 3,000 90,000 110,000 10,000