1.

Bozer Company produces three products from a joint process. The joint process has total costs of $500,000 per month. All three products, A, B, C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available:

Units Immediate Sales Price Later Sales Prices Unit cost of Further Processing

A 5,000 $15 $20 $6

B 17,500 $20 $25 $4

C 10,000 $25 $32 $3

Decide whether each product should be sold immediately or sold after processing further.

What is the total benefit the company would experience by following your recommendations above regardging (not) processing any further? Hint: Give the sum of the benefits from each product you have chosen to process further.

2.

Lyve Co. produces two product lines. Prices/costs per unit follow. Beta Delta

Selling price $60 $45

Direct material $16 $12

Direct labor ($20/hour) $15 $10

Variable overhead $13 $8

Demand for Beta is 223 units and Delta is 331 units

Lyve Company has only 175 labor hours available

Given the constrained resource, what is the maximum contribution margin the company can attain if it uses the optimal sales mix?

Round only your final answer to the nearest dollar.