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HCL Chemicals produces three products: HC, HL & CL. The raw materials cost equal $30,000 and processing cost total $24,000. At the split-off point, 1,500
HCL Chemicals produces three products: HC, HL & CL. The raw materials cost equal $30,000 and processing cost total $24,000. At the split-off point, 1,500 gallons of HC is produced and sells for $20,000. 4,000 gallons of HL and 500 gallons of CL are also produced but cannot be sold without further processing. Additional processing will cost $9,000. The HL is for $60,000, and the CL is sold for $5,000. What is the margin for Product HL?
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