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Dundee Company currently produces three products from a joint process. The joint process has total costs of $290,000 per month. All three products, A, B

Dundee Company currently produces three products from a joint process. The joint process has total costs of $290,000 per month. All three products, A, B & C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available:

Units Immediate Sales Price Later Sales Price Unit Cost of Further Processing
A

32,000

$

9

$

12

$

7

B

64,000

$

9

$

17

$

7

C

96,000

$

8

$

12

$

2

Which of the products should be sold after further processing?

Multiple Choice

  • Product A only

  • Products B and C

  • Products A and C

  • Product B only

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