PART-B 10.50 MARKS Variable Products Co. produces 3 products from a $4,500 joint process These products can be processed further to form another set of 3 products. There are markets for all of the products. Data for the current period are: At Separation Sales Value $2,750 After Processing Additional Products Costs Products Sales Value $2,450 X $5,450 A B 650 900 Y 1,350 3,800 C 3,600 Z 7,600 Instructions: 1.75 Marks Each 1 What is the net income if the best product mix is chosen? 2. If there was no market for B at the split-off point, should it be processed further? 3. If an A could be processed directly, at no cost, into a opportunity cost should A be valued for purposes of making this decision? C, at what 4. Referring to question 3 above, should A be processed into C? Why or why not? 5. Assume that C can be processed directly into an X. If the firm is not to be any worse off as a result, the cost of processing should not exceed how much? 6. Assume that A can be processed into Z at a cost of $5,250. If the sales value of Z is stable, to what level would the price of X have to fall before the firm is justified in taking this course of action