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Center Company currently produces three products from a joint process. The joint process has total costs of $512,000 per month. All three products, A, B

Center Company currently produces three products from a joint process. The joint process has total costs of $512,000 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 Price Unit Cost of Further Processing
A 4,400 $ 15 $ 16 $ 2.00
B 17,900 $ 21 $ 24 $ 2.50
C 10,400 $ 24 $ 31 $ 3.00

a-1. Should Product A be sold immediately or sold after processing further?

Sell Now
Sell Later

a-2. How much will the decision affect profit? b-1. Should Product B be sold immediately or sold after processing further?

Sell Now
Sell Later

b-2. How much will the decision affect profit? c-1. Should Product C be sold immediately or sold after processing further?

Sell Now
Sell Later

c-2. How much will the decision affect profit?

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