Fett Corporation has a joint process that produces three products: I, G and 88. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $20,000. Other data follows:

Which product(s), if any should the company process beyond the split-off point? Which, if any, should they sell at the split-off point?

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Q5.2

1 Point

Suppose the company currently sells all products at the split-off point. What would be the change in net operating income if the company chose the optimal sales-at-split-off vs. sales-after-processing combination?

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