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Blue Corporation has a joint process that produces three products: D.O.G. Each product may be sold at split-off or processed further and then sold. Joint-processing

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Blue Corporation has a joint process that produces three products: D.O.G. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for the year amount to $15,000, which is allocated on the basis of units produced. The production level for each product is 5,000 units. Other data follows: Per unit sales value at Added Processing cost per Per unit sales value if processed Allocated joint cost per Product split-off unit further unit $ 10 $12 $24 $ 3.00 11 3.00 9 D O 3 19 G 17 25 3.00 To maximize profits, Blue Corporation should process further Product D&O Product G only Product D&G Product O only

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