Hello tutors,

Superior Company manufactures three products using the same production process: tables, benches, and planters. The costs incurred up to the split-off point are $200,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per units at each point in production, and the additional processing costs are as follows:

Product: Number of units produced Selling price at split-off Selling price after processing Additional processing costs

Tables 2000 $11.00 $16.00 12,000

Benches 5000 $12.00 $16.20 16,000

Planters 3000 $19.40 $25.00 11,000

Question: Which products should be processed further and which should be sold at split-off point?

The corresponding table got squished but is still in order. Thanks.