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Assume a company has three products-A, B, and C-that emerge from a joint process. The selling prices and outputs for each product at the
Assume a company has three products-A, B, and C-that emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows: Selling Price Product A $ 33 per pound Output 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 B c $ 66,000 $ 37 per pound $ 73,500 $ 34 per pound $ 89,500 $ 30 per pound What is financial advantage (disadvantage) of further processing if the company decides to further process all three products?
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