Analysis of joint products. GFA has three products that are produced from a

joint process. You need to analyze whether the current products that are made

are the most profitable decision for GFA, or whether changes should be made to

increase profitability.

In $2023,$ the output at the split$-$off point was $500,000$ kilograms of GreenBoost. Each

kilogram of GreenBoost retails for $$6$ per kilogram.

The joint costs of processing the compost in $2023$ was $$1,020,000.$ GFA used $100,000$

kilograms of the GreenBoost to create OrganicHarvest, and $50,000$ kilograms to create

BioGrow. There is a $25\%$ loss of volume when creating the BioGrow product, and a

$50\%$ loss of volume when creating OrganicHarvest.

The following table outlines the process:

David is unsure whether he should continue to produce the three products, or whether it

would be more beneficial to focus just on the GreenBoost product. Right now, David is

tracking profitability using the following format: