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Corporation manufactures three products from a joint process. The three products are in industrial grade form at the split- off point. They can either
Corporation manufactures three products from a joint process. The three products are in industrial grade form at the split- off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this process is as follows: Sales Price at split-off point Product 1. $16 Product 2 $12 Product 3 $5 Allocated joint costs $6,000 $6,000 Sales Price after further processing $20 $18 Cost of further processing $5,280 $2,330 Product Quantity 1,000 lb. 1,000 lb. $6,000 $14 $3,160 1,000 lb. Q. What would be the additional amount of profit that Corp. would gain from further processing the product(s) that is/are more profitable to process further rather than be sold at the split-off point? A. $
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