Prepare an analysis to help the company make decision about whether to sell joint product at the split-off point or process them further. Three joint product at joint cost of $117,000

Chemical Product Sales Additional Processing cost

X $230,000 $190,000

Y 330,000 300,000

Z 75,000 100,000

The company has had an opportunity to sell at split-off directly to other processors. If that alternative had been selected, sales would have been X $54,000 Y $32,000 and Z $54,000

A. How should the $117,000 be allocated to the three products?

B Is the company currently making the right processing decision? Explain

C If the company alters its processing decision, what would be the expected combined operating income from the three products