7. Gomez Industries produces three products from a single operation. Product A sells for $3 per unit, Product B for $6 per unit, and Product C for $9 per unit. When B is processed further, there are additional unit costs of $3, and its new selling price is $10 per unit. Each product is allocated $2 of joint cost from the initial production operation. Should Product B be processed further, or should it be sold at the end of the initial operation?

8. Richard V. meats, in an attempt to provide superb customer service, is considering the expansion of its product offerings from whole hams and turkeys to complete ham and turkey dinners. Each dinner would include a carved ham or turkey, two sides dishes, and six rolls or cornbread. The accountant for Richard V. Meats has compiled the following relevant information:

Sales Revenue, No Sales Revenue If Additional

Product Additional Service Processed Further Processing Costs

Ham $30 $50 $15

Turkey 20 35 15

A cooked, uncarved ham costs Richard V. Meats $20 to produce. A cooked, uncarved turkey costs $15 to prepare. Use incremental analysis to determine which products Richard V. Meats should offer.