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PLEASE HELP WITH A-1 AND B Thank you! Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea
PLEASE HELP WITH A-1 AND B Thank you!
Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows Sales Value and Additional Costs If Processed Further Pounds Produced 9,000 6,700 2,000 Sales Value at Product ea lea Sea Paste Sea Powder Final Sales Value $90,000 160,000 85,000 Additional Cost $ 35,000 50,000 14,000 Split-off $ 60,000 74,400 70,000 Required a-1. Compute the incremental benefit (cost) of further processing to these products a-2. Which products should Kelp process beyond the split-off point? b. At what price per pound would it be advantageous for Kelp Company to sell Sea Paste at the split-off point rather than process it further? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Compute the incremental benefit (cost) of further processing to these products. (Negaive amounts should be shown with a minus sign.) Sea Tea Sea Paste Sea Powder Incremental benefit (cost)Step by Step Solution
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