Makanga Limited produces four joint products Aee, Bee,Cee and Dee all of which emerge from the processing of one raw material Zee. The following relevant data is provided:

Joint Product	Number of units	Selling price per unit (N$)
Aee	5 000	180
Bee	9 000	80
Cee	4 000	40
Dee	2 000	110

The company budgets for a profit margin of 10% of sales value. The other estimated costs are:

Carriage inwards	N$100 000
Direct wages	N$300 000
Manufacturing overhead	N$200 000
Administrative overhead	10% of sales value.
Additional costs to further process product Dee	N$ 120 000

REQUIRED	Marks
2.1	The maximum price that should be paid for Zee.	6
2.2	Allocate the cost of Zee on the basis of output and Sales value to product Dee.	2
2.3	Prepare a statement of comprehensive incomes for Product Dee using units produced as a basis to allocate common costs.	3.5
2.4	Product Dees revenue has been reducing over the last few years. The management is of the view that if this product is further processed it could be sold for N$ 200 per unit. Should this product be further processed?	3.5
Total	15