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Please answer question attached 1. (30 pts) Herb's Herbs processes exotic herbs into compounds used for perfumes and lotions. One particular plant material, the Cobretti
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1. (30 pts) Herb's Herbs processes exotic herbs into compounds used for perfumes and lotions. One particular plant material, the Cobretti root is processed yielding four joint products: AZ4, BY3, CX2, and DW1. Each of these can either be sold as is, or processed further. The following describes the yields of each product from one batch of Cobretti, the selling prices of the unprocessed and processed products, and the costs of processing. The cost of one batch of Cobretti is $30,000. Number of ounces per batch Cost of processing Selling price of unprocessed product (oz.) Selling price of processed product (oz.) AZ4 100 $2,400 $62 $85 BY3 80 $400 $49 CX2 125 $2,500 $102 DW1 195 $2,800 $47 $57 $127 $61 Required: a. Of the four products, which should be sold as is, and which should be processed further? b. Allocate the $30,000 joint cost to each product based on the Net Realizable Value for each product. c. Calculate total profit for each individual product and the companyStep by Step Solution
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