Jungle Bonds Inc. uses a joint process to produce Products A, B, C, D. Each product may be sold at its split-off point or processed further. Additional processing costs of specific products are entirely variable. Joint processing costs for a single batch of joint products are $80,000. Other relevant data are as follows:

a. Evaluate each product and determine which products should be processed further.

b. How will processing each product further affect the total profits for the company?

PRODUCT A B SALES VALUE AT SPLIT OFF ADDITIONAL PROCESSING COSTS SALES VALUE OF FINAL PRODUCT $ 40,000 $ 32,000 $ 70,000 $ 16,000 $ 10,000 $ 30,000 $ 20,000 $ 20,000 $ 37,000 $ 24,000 $ 11,000 $ 40,000 $ 100,000 $ 73,000 $ 177,000 C D TOTAL