Forest Products, Incorporated, manufactures three products $($FP$-10,$ FP$-20,$ and FP$-40)$ from a single, joint input. None of the products

can be sold without further processing. In November, joint product costs were $$240,000.$ Additional information follows:

The sale of FP$-40$ has been banned by a recent law. If FP$-40$ is produced, disposal in an approved manner costs $$120,000$ for every

$55,000$ units produced.

Required:

a$.$ Assuming that Forest Products continues to use the physical quantities method of allocation and to manufacture and sell FP$-10$ and

FP$-20.$ What joint costs would be allocated to FP$-10$ and FP$-20?$

b$.$ There is a possibility that a market for FP$-10$ and FP$-20$ at split$-$off will develop. In other words, it will be possible to sell the two

products rather than process them further. At what sales value $($at split$-$off$)$ would Forest Products be indifferent between selling

them at split$-$off and processing them further?

c$.$ At what sales value $($at split$-$off$)$ would Forest Products be indifferent between selling them at split$-$off and processing them further,

in case the disposal cost for FP$-40$ increases to $$150,000$ for every $55,000$ units of FP$-40$ produced?

Complete this question by entering your answers in the tabs below.

At what sales value $($at split$-$off$)$ would Forest Products be indifferent between selling them at split$-$off and processing them

further, in case the disposal cost for FP$-40$ increases to $$150,000$ for every $55,000$ units of FP$-40$ produced?