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Oriole Company produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a
Oriole Company produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:
Sales Value at Split-off AdditionalVariable Costs Sales Value afterFurther Processing
Green lumber $159600 $24000 $178000
Rough lumber 122000 27700 170800
Sawdust 102000 19500 129600
What is the increase in profit if the appropriate products are processed further?
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