Question
Nathan Company produces three products (A, B, and C) in a single joint process. All of the products are salable immediately upon split-off. Alternatively, any
Nathan Company produces three products (A, B, and C) in a single joint process. All of the products are salable immediately upon split-off. Alternatively, any of the products could be processed further and sold at a higher price. Cost and price information is as follows:
Product price at split - off additional processing cost price after processing unit volume
A $10 $10,000 $12 10,000
B $15 $25,000 $18 5000
C $20 $50,000 $30 8000
The decision that would maximize profits would be:
a. Product A sell now; Product B process further; and Product C sell now
b. Product A process further; Product B process further; and Product C process further
c. Product A process further; Product B sell now; and Product C process further
d. Product A sell now; Product B sell now; and Product C sell now
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