Question
a company manufactures three products from a joint process. the three products are in industrial grade form at the split-off point. they can either be
a company manufactures three products from a joint process. the three products are in industrial grade form at the split-off point. they can either be sold at that point or processed further into premium grade.
product 1 product 2 product 3
sales price at split off point 16 12 5
allocated joint cost 6000 6000 6000
sales price after processing 20 18 14
cost of further processing 5090 3100 2210
product quantity 1000 1000 1000
what would be additional amount of profit that the company would gain from fruther processing that is more profitable to process further rather than be sold at the split off point?
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