Lido manufactures A and B from a joint process cost = $50,000. Six thousand pounds of A can be sold at split-off for $20 per pound or processed further at an

additional cost of $10,000 and then sold for $24. Eight thousand pounds of B can be sold at split-off for $14 per pound or processed further at an additional cost of $25,000 and later sold for $17.

Required:

Which products should be processed further or not? Why? Give the total dollar impact to income for each product based on your recommendation.

Recommendation: