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Each day, Cullumber Corporation processes 1 ton of a secret raw material into two resulting products, AB1 and XY1. When it processes 1 ton of
Each day, Cullumber Corporation processes 1 ton of a secret raw material into two resulting products, AB1 and XY1. When it processes 1 ton of the raw material, the company incurs joint processing costs of $ 63,000. It allocates $ 28,000 of these costs to AB1 and $ 35,000 of these costs to XY1. The resulting AB1 can be sold for $ 103,000. Alternatively, it can be processed further to make AB2 at an additional processing cost of $ 48,000, and sold for $ 154,000. Each day's batch of XY1 can be sold for $ 99,000. Or, it can be processed further to create XY2, at an additional processing cost of $ 53,000, and sold for $ 133,000. What products should Cullumber Corporation make and sell. The company should process and sell The company should not process and sell
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