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CASE ASSIGNMENT 2 (7pain) Cat Company produces products C, A, and T 'om a joint production process. Each product may be sold at the splitoff
CASE ASSIGNMENT 2 (7pain) Cat Company produces products C, A, and T 'om a joint production process. Each product may be sold at the splitoff point or be processed further. Joint production costs of $134,000 per year are allocated to the products based on the relative number of units produced. Data for Cat's operations for the current year are as follows: I UnitsI Allocated JointI Sales Value Product I ProducedI Production CostI At Splitoff C I 16,000I $43,000I $62,000 A I 25,000I 54,000I 73,000 T I 13,000I 37,000I 52,000 Product C can be processed beyond the splitoff point for an additional cost of $21,000 and can then be sold for $91,000. Product A can be processed beyond the splitoff point for an additional cost of $34,000 and can then be sold for $95,000. Product T can be processed beyond the split off point for an additional cost of $8,000 and can then be sold for $63,000. QUESTION 1 Which products should be processed beyond the splitoff point? (Show all calculations) (6 points) QUESTION 2 What is the splitoff point? Explain in your own words. (I posing) .. n
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