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Company X produces joint products A and B. In July 2015 joint cost of the production is 50.000 TL. Sales revenue at split-off point for
Company X produces joint products A and B. In July 2015 joint cost of the production is 50.000 TL. Sales revenue at split-off point for product. A is 70.000 TL, and for B 30.000 TL. The manager of the company wants to improve the products further. For this purpose products A and B require 10.000 TL and 8.000 TL additional improvement costs respectively. After these improvements performed, the new sales revenues for A and B are 100.000 and 45.000 TL respectively. Required: which product do you think should be improved further
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