Question 3 Sell or Process Further Jimbob Co. manufactures three products from a common input in a joint processing operation. All units of all three products can be sold at the split-off point. Alternatively all three products can be further processed and all units after further processing can be sold. Information about the products is as follows: Product 1001 1002 1003 Allocated costs at split-off $50,000 $90,000 $60,000 Sales values at split-off $100,000 $180,000 $120,000 Further processing costs $70,000 $80,000 $24,000 Sales values after furthering processing $160,000 $300,000 $150,000

Required: Which products should be sold at the split-off point and which should be further processed and sold after further processing?