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Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows:

Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows:

Product Units Produced Sales Value at Split-Off If Processed Further
Additional Costs Sales Values
Chem-1 288,000 $ 220,000 $ 32,700 $ 260,000
Chem-2 176,000 264,000 29,400 290,000
Chem-3 192,000 149,600 24,900 180,000
Chem-4 144,000 246,400 26,300 270,000
800,000 $ 880,000 $ 113,300 $ 1,000,000

Required:

Which, if any, of the four products would you recommend Barrett Chemicals sell at split-off (and not process further)? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

  • Chem - 1
  • Chem - 2
  • Chem - 3
  • Chem - 4

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