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Sell or process further joint product decision Highland manufactures A and B from a joint process cost= $70,000. Six thousand pounds of A can be

Sell or process further joint product decision

Highland manufactures A and B from a joint process cost= $70,000. Six thousand pounds of A can be sold at split off for $20 per pound or processed further at an additional cost of $20,000 and then sold for $23. Ten thousand pounds of B can be sold at split off for $15 per pound or processed further at an additional cost of $13,000 and later sold for $17.

Which products should be processed further or not? Why? Give the dollar impact to income for each product based on your recomendation.

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