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Galveston Corporation has $200,000 of joint processing costs and is studying whether to process Products J and K beyond the split-off point. Information about

 

Galveston Corporation has $200,000 of joint processing costs and is studying whether to process Products J and K beyond the split-off point. Information about Products J and K follows. Product J Tons produced Separable variable processing costs beyond split-off Selling price per ton at split-off 25,000 $ 64,000 15 Product K 15,000 $ 100,000 52 Selling price per ton after additional processing 21 58 If Galveston desires to maximize total company income, what should the firm do with regard to Products J and K?

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