Question
Darly Inc. harvests a plant which produces multiple products (leaves and roots). The initial cost to harvest the plants is $ 78,000. At that point,
Darly Inc. harvests a plant which produces multiple products (leaves and roots). The initial cost to harvest the plants is $ 78,000. At that point, the leaves can be sold for $45,000 and the roots can be sold for $60,000.
The leaves can be dried for an additional cost of $11,000. Once dried the leaves can be sold for $76,000.
The roots can be ground for an additional cost of $20,000 and can be sold for $75,000.
1 - What is the incremental revenue from processing (drying) the leaves? $
2- What is the incremental cost of processing the leaves further? $
3 - Should the leaves be sold when first harvested or processed further? Sell at harvest/Processed further
4 - What is the incremental revenue from processing the roots further? $
5- What is the incremental cost of processing the roots further? $
6 - Should the roots be sold when first harvested or processed further? Sell at harvest/Processed further
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