Question
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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