Question
HATSU CO. has two products, product EXO and product BP, emerge form a joint process. Product EXO has been allocated P30, 800 of the total
HATSU CO. has two products, product EXO and product BP, emerge form a joint process. Product EXO has been allocated P30, 800 of the total joint costs of P44, 000. A total of 2, 000 units of product EXO are produced from the joint process. Product EXO can be sold at the split-off point for P13 per unit, or it can be processed further for an additional total cost of P14, 000 and then sold for P15 per unit. If product EXO is not processed further and sold, what would be the effect on the overall profit of the company compared with sale at split-off point?
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