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Good Earth Products produces orange juice and candied orange peels. A 1,000-pound batch of oranges, costing $490, is transformed using jg of $50 into 110
Good Earth Products produces orange juice and candied orange peels. A 1,000-pound batch of oranges, costing $490, is transformed using jg of $50 into 110 pounds of orange peels and 290 pints of juice. The company has determined that the sales value of 110 pounds of peels at the split-of point is $340, and the value of a pint of juice (not pasteurized or bottled) is $0.5. Be the split-off point, the cost of sugar-coating and packaging the 110 pounds of peels is $70. The cost of pasteurizing and packaging the 290 pints of juice is $250. A 1l0-poundbox of candied peels is sold to commercial baking companies for $620. Each pint of juice is sold for $1.78. Profit per 1 10-pound box of sugar-coated peels $7 Profit per pint of juice $7
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