Question
6-A3 Joint Products: Sell or Process Further The Mussina Chemical Company produced three joint products at a joint cost of $117,000. These products were processed
6-A3 Joint Products: Sell or Process Further
The Mussina Chemical Company produced three joint products at a joint cost of $117,000. These products were processed further and sold as follows:
| Chemical Product | Sales | Additional Processing Costs |
| A | $230,000 | $190,000 |
| B | $330,000 | $300,000 |
| C | $175,000 | $100,000 |
The company has had an opportunity to sell at split-off directly to other processors. If that alternative had been selected, sales would have been A, $54,000; B, $32,000; and C, $54,000. The company expects to operate at the same level of production and sales in the forthcoming year.
1. Could the company increase operating income by altering its processing decisions? If so, what would be the expected overall operating income? 2. Which products should be processed further and which should be sold at split-off?
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Biometric And Auditing Issues Addressed In A Throughput Model
Authors: Waymond Rodgers
1st Edition
1617356530, 978-1617356537
