MAJESTIC Co. produces products A, B, and C from a joint production process. Each product may be sold at the split-off point or processed further. Joint production costs of $150,000 per year are allocated to the products based on the relative number of units produced.

MAJESTIC Co. produces products A, B, and C from a joint production process. Each product may be sold at the split-off point or processed further. Joint production costs of $150,000 per year are allocated to the products based on the relative number of units produced. Information for MAJESTIC Co. operations for 2019 follow:

	Units Produced	Sales Values at Split-Off	Sales Values If Processed Further	Costs of Processing Further
Product A	15,000	$85,000	$200,000	$10,000
Product B	7,000	$60,000	$120,000	$25,000
Product C	3,000	$37,500	$42,000	$8,000

Required:

1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Show your calculations)
2. Should each of the three products be sold as is or processed further into an end product?

for MAJESTIC Co. operations for 2019 follow: Units Produced Sales Values at Split-Off Sales Values If Processed Further Costs of Processing Further Product A 15,000 $85,000 $200,000 $10,000 Product B 7,000 $60,000 $120,000 $25,000 Product C 3,000 $37,500 $42,000 $8,000 Required: What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Show your calculations) Should each of the three products be sold as is or processed further into an end product?