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Pharoah Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each
Pharoah Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as is, or they can be processed further and sold for a higher price. The company incurs joint costs of $177,600 to process one batch of the raw material that produces the three joint products. The following cost and selling price information is available for one batch of each product: Cost to Selling Price of Selling Price at Allocated Process Processed Split-Off Point Joint Costs Further Product Sarco $199.900 $39.200 $96,000 $299,600 Barco 299.100 59,000 88,000 363.600 Larco 475.900 79,400 249,000 799.100 Determine whether each of the three joint products should be sold as is, or processed further. (Enter loss with a negative sign preceding the number, es -15,000 or parenthesis, eg. (15,000).) Incremental Profit/Loss Amount Decision Sarco $ Barco
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