Decision Making #1-Sell or Process Further Joint Product Decision

XYZ manufactures A and B from a joint process cost = $60,000. Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $10,000 and then sold for $23. Ten thousand pounds of B can be sold at split-off for $14 per pound or processed further at an additional cost of $12,000 and later sold for $16.

Required:

-Which products should be processed further or not? Why?

-Give the total dollar impact to income for each product based on your recommendation.I am not looking for per unit information, but how each decision will impact the company's income in total.

Recommendation:

Decision making #2-Use of Limited Resources-Singe Constraint

Bush Manufacturing has 30,000 labor hours available for producing M and N. Consider the following information:

M

N

Required labor per unit in hours

2

6

Maximum demand in units

9,000

6,000

Contribution margin per uint

$10,000

$12.00

Required:

-What is the optimal product mix (how many M and N should be produced)?

-You must provide the number of units to produce for each product at the optimal product mix and explain your answer along with supporting computations.

Recommendation:

?

Decision Making #1-Sell or Process Further Joint Product Decision XYZ manufactures A and B from a joint process cost = $60,000. Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $10,000 and then sold for $23. Ten thousand pounds of B can be sold at split-off for $14 per pound or processed further at an additional cost of $12,000 and later sold for $16. Required: Which products should be processed further or not? Why? . Give the total dollar impact to income for each product based on your recommendation. I am not looking for per unit information, but how each decision will impact the company's income in total. Recommendation: Decision making #2-Use of Limited Resources-Singe Constraint Bush Manufacturing has 30,000 labor hours available for producing M and N. Consider the following information: M N Required labor per unit in hours 2 6 Maximum demand in units 9,000 6,000 Contribution margin per uint $10,000 $12.00 Required: What is the optimal product mix (how many M and N should be produced)? . You must provide the number of units to produce for each product at the optimal product mix and explain your answer along with supporting computations. Recommendation