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Ottawa Corporation produces two products from a joint process. Information about the two joint products follows: Product X Product Y Anticipated production 2,000 lbs 4,000
Ottawa Corporation produces two products from a joint process. Information about the two joint products follows:
Product X
Product Y
Anticipated production
2,000 lbs
4,000 lbs
Selling price per lb. at split-off
P30
P16
Additional processing costs/lb after split-off (all variable)
P15
P30
Selling price/lb after further processing
P40
P50
The cost of the joint process is P85,000.
Ottawa currently sells both products at the split-off point. If Ottawa makes decisions which maximizes profit, Ottawas profit will increase by
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