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Natures Chemical Company has a joint process, which produces three products called A, B and C. Each product may be sold at split-off or processed
Natures Chemical Company has a joint process, which produces three products called A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year are $30,000. Other relevant data are below. Assuming Natures Chemical Company maximizes its Net Operating Income by additionally processing the most profitable product (or products, if any) and selling the others at the split off point, how much would the Company's total NOI be.
Sales Value | Separable Processing | Sales Value | |
Product | at Split-Off | Costs After Split-Off | at Completion |
A | $100,000 | $28,000 | $115,000 |
B | 70,000 | 10,000 | 82,000 |
C | 78,000 | 14,000 | 79,000 |
Joint cost | 30000 |
Group of answer choices
$260,000
$257,000
$220,000
$217,000
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