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kelp company produces three joint products from seaweed. at the split off point three basic products emerge sea tea,sea paste, and sea powder.each of these

kelp company produces three joint products from seaweed. at the split off point three basic products emerge sea tea,sea paste, and sea powder.each of these products can either be sold at the split off point for proceed further if they are processed further the result products can be sold as delegates to health food stores. cost and revenue information as follows Sales values and additional costs if proceeds further Pounds sales value. Final. . Additional Produced. At split off. Sales value cost Sea tea 9,000. 60,000. $90,000. $35,000 Sea paste 4,000. 80,000. 160,000. 50,000 Sea powder 2,000. 70,000. 85,0000. 14,000 instructions A. Which products should kelp process be on the split off point? b. at what price per pound would be advantageous for kelp company to sell CP at the split off point rather than process it further? make a chemical company is based in the town of swampton. the company is swamtons economic lifeblood, generating annual income of a hundred million dollars and employing nearly 75 percent of its workforce. proper disposal of these by-products in compliance with environmental regulation would cost McKay in excess oin the field at the outskirts of swamptons in cities McKay has chosen for two decades to dump is hazardous waste in the field at the outskirts of swamptons city limits.for doing so, it pays a fine of $100000 per year the following information also pertains to McKays chemical company and the town of swampton. 1.the reporter has threatened to expose McKay chemical company on a 60 minute primetime television news program the story could result in national boycott of the company's products and fine of up to 50 million.a boycott could reduce the company's and come by as much as 25 million per year. However the reporter has agreed not to air the story if pays her a consulting fee of 1 million per year. 2. The towns people are becoming increasingly concerned that the illegal dumping may eventually pollute the groundwater and present a serious health hazard. however most equally concerned that if the company's practices are exposed swampton and its inhabitants would face financial ruin. 3. The judge who hands down the hundred thousand dollar fine each year is also a major shareholder of McKayla Chemical Company and serves on its board of directors. the Town Board invest the annual find in a scholarship fund available on the basis of the need to children of McKay's employees. over the years many of the scholarship recipients have gone on to become successful doctors teachers scientists and other productive members of society. assume that you have just been appointed as the new chief executive officer of McKay chemical you have been presented with these factors described in this case along with the following incremental analysis perform by an assistant. Pay the risk incremental Consulting fee. Public analysis Exposure Consulting fees $(1,000,000). $1,000,000 Potential fines 0. $(50,000,000). (50,000,000) Reduction in currentfines 0. 100,000. 100,000 Additional disposal costs 0. (10,000,000). (10,000,000) Potential cost of boycott 0. (25,000,000). (25,000,000) Net cost of options $(1,000,000). (84,900,000). (83,900,000) instruction A. identify any shortcomings in the preceding incremental analysis b. draft a memorandum to the Board of Directors summarizing what you intend to do about this situation

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