1. (15 pts.) A company has a joint process that produces three products: X, Y and...
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1. (15 pts.) A company has a joint process that produces three products: X, Y and Z. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $100,000. Other data follows: Sales Value Product at Split-Off $128,000 X Y 50,000 Z 25,600 Additional Processing Costs after Split-Off $16,000 26,000 20,000 Sales Value after additional processing $160,000 77,000 40,000 a) What is the net effect of processing further all three products? b) Should all products be processed further? following data: 1. (15 pts.) A company has a joint process that produces three products: X, Y and Z. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $100,000. Other data follows: Sales Value Product at Split-Off $128,000 X Y 50,000 Z 25,600 Additional Processing Costs after Split-Off $16,000 26,000 20,000 Sales Value after additional processing $160,000 77,000 40,000 a) What is the net effect of processing further all three products? b) Should all products be processed further? following data:
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