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Chris owns a small sheet metal business. He produces three different types of sheet metal. Their sizes are similar, but they have different degrees
Chris owns a small sheet metal business. He produces three different types of sheet metal. Their sizes are similar, but they have different degrees of flexibility. Costs are allocated based on the sales value at split-off point method. Additional information for March production follows: Very Stiff Flexible Flexible Total Units produced 103,000 83,000 18,000 204,000 Joint costs ? ? ? $957,000 Sales value at split-off point $810,000 $555,000 $135,000 $1,500,000 Additional cost if processed further $95,000 $28,000 $13,000 $136,000 Sales value if processed further $1,003,000 $523,000 $151,000 $1,677,000 (b) Would you recommend that Chris process the Very Flexible sheet metal further? (Show a negative amount preceded by a minus sign, e.g. -9000 or (9000).) Sell at split-off $ Process further Contribution from processing further
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