Eunice company produce two products from a joint process

Puillal usa ge or the company's inventory of 16,000 pounds of the material. Compute the total contribution margin for the product mix that you recommen Problem 8-66 Sell at Split-Off or Process Further Eunice Co batch, which yields 1,000 liters of germain and 4,000 liters of hastain. Germain can be sold at the split-off point for $24 or be processed further, into geraiten, at a manufacturing cost of $4,100 (for the 1,000 liters) and sold for $33 per liter. OB mpany produces two products from a joint process. Joint costs are $70,000 for one If geraiten is sold, additional distribution costs of $0.80 per liter and sales commissions of liability issues with geraiten-issues that do not arise with germain. 10% ofsal dition, Eunice's legal department is concerned about poten- Required: 1. CONCEPTUAL CONNECTIO N Considering only gross profit, should germain be sold at the split-off point or processed further? CONCEPTUAL CONNECTION Taking a value-chain approach (by considering distribution, marketing, and after-the-sale costs), determine whether or not germain should be processed into geraiten. Problem 8-67 Differential Costin