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Sell at Split-Off or Process Further Bozo Inc. manufactures two products from a joint production process. The Joint process costs $110,000 and yields 6,000 pounds

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Sell at Split-Off or Process Further Bozo Inc. manufactures two products from a joint production process. The Joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pounds of HS compound, LTE can be sold at split-off for $55 per pound. HS can be sold at split-off for $12 per pound. A buyer of HS asked Bozo to process HS further into CS compound. If Hs were processed further, it would cost $37,400 to turn 14,000 pounds of HS into 4,000 pounds of CS. The Cs would sell for $59 per pound. Required: 1. What is the contribution to income from selling the 14,000 pounds of HS at split-off? 168,000 2. CONCEPTUAL CONNECTION: What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS? 30,600 x Should Bozo continue to sell the HS at split-off or process it further into CS? Process it further into cs Feedback

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