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A company makes three products. Some products could be sold at the split-off point, or processed further and sold after further processing. The products are
A company makes three products. Some products could be sold at the split-off point, or processed further and sold after further processing. The products are produced in a joint processing operation with $640,000 of joint processing costs monthly, which are allocated based on ounces produced Number of Product ounces Price per pound at split-off Further processing Price after processing costs further Product 1 64,000 $9 $89,000 $11.00 Product 21 114,000 $11 $44,000 $11.50 Product 31 39,000 $6 $14,000 $6.80 Which of the products should be processed further? Mule Choice Product 1 only Both Product 1 and Product 2 Product 3 only Both Product 1 and Product 3
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