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Assume a company has three productsA, B, and Cthat emerge from a joint process. The selling prices and outputs for each product at the split-off

Assume a company has three productsA, B, and Cthat emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows:

Product Selling Price Output
A $ 33 per pound 14,000 pounds
B $ 29 per pound 18,000 pounds
C $ 24 per pound 19,000 pounds

Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows:

Product Additional Processing Costs Selling Price
A $ 65,000 $ 37 per pound
B $ 70,500 $ 34 per pound
C $ 70,000 $ 30 per pound

What is financial advantage (disadvantage) of further processing Product B?

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