Bozo Inc manufactures two products from a joint production process The joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pounds of HS compound LTE can be sold at split off for $55 per pound HS can be sold at split off for $9 per pound A buyer of HS asked Bozo to process HS further into CS compound If HS were processed further, it would cost $42,500 to turn 14,000 pounds of HS into 4,000 pounds of CS The CS would sell for $63 per pound Required 1 What is the contribution to income from selling the 14,000 pounds of HS at split off 2 CONCEPTUAL CONNECTION What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS

Question

Bozo Inc  manufactures two products from a joint production process  The joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pounds of HS compound  LTE can be sold at split off for $55 per pound  HS can be sold at split off for $9 per pound  A buyer of HS asked Bozo to process HS further into CS compound  If HS were processed further, it would cost $42,500 to turn 14,000 pounds of HS into 4,000 pounds of CS  The CS would sell for $63 per pound  Required  1  What is the contribution to income from selling the 14,000 pounds of HS at split off  2  CONCEPTUAL CONNECTION  What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS

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Bozo Inc. manufactures two products from a joint production process. The joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pounds

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