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Bozer Company produces three products from a joint process. The joint process has total costs of $500,000 per month. All three products, A, B, C,
Bozer Company produces three products from a joint process. The joint process has total costs of $500,000 per month. All three products, A, B, C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available: Units Immediate Sales Price Later Sales Prices Unit cost of Further Processing A 5,000 $15 $20 $6 B 17,500 $20 $25 $4 C 10,000 $25 $32 $3 Decide whether each product should be sold immediately or sold after processing further. What is the total benefit the company would experience by following your recommendations above regardging (not) processing any further? Hint: Give the sum of the benefits from each product you have chosen to process further. Lyve Co. produces two product lines. Prices/costs per unit follow. Beta Delta Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $12 $8 Demand for Beta is 233 units and Delta is 306 units If Lyve Company has only 179 labor hours available, how many units of Delta should be manufactured? Round your final answer to the nearest whole unit
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