Question
Each day, Wildhorse Corporation processes 1 ton of a secret raw material into two resulting products, AB1 and XY1. When it processes 1 ton of
Each day, Wildhorse 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 $71,000. It allocates $36,000 of these costs to AB1 and $35,000 of these costs to XY1. The resulting AB1 can be sold for $111,000. Alternatively, it can be processed further to make AB2 at an additional processing cost of $46,000, and sold for $159,000. Each days batch of XY1 can be sold for $105,000. Or, it can be processed further to create XY2, at an additional processing cost of $61,000, and sold for $141,000. What products should Wildhorse Corporation make and sell. The company should process {AB1 or AB2] and sell [AB1 or AB2]
The company should not process [XY1 or XY2] and sell [XY2]
Please help here a bit lost
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