Dundee Company currently produces three products from a joint process. The joint process has total costs of $276,000 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	44,000		$	4			$	11			$	10
B	88,000		$	5			$	11			$	3
C	132,000		$	8			$	13			$	3

Which of the products should be sold after further processing?

Multiple Choice

• Products B and C

• Product A only

• Products A and C

• Product B only

Pinter Corp. produces three products, and is currently short on machine hours since one of its two machines is down - only 970 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:

	Product A			Product B			Product C
Selling price	$	11.00		$	9.00		$	11.00
Variable cost per unit	$	7.70		$	5.40		$	4.40
Machine hours per unit		0.75			0.25			1.00
Demand		1,020			640			330

How many of each product should be sold while the machine is down to maximize profit?

Multiple Choice

• 640 of Product A, 640 of Product B, and 330 of Product C.

• 480 of Product A, 640 of Product B, and 330 of Product C.

• 320 of Product A, 0 of Product B, and 330 of Product C.

• 0 of Product A, 3,880 of Product B, and 0 of Product C.