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should mzi ltd sell product v or should it process v and sell g Mzi Ltd produces two joint products, ( V ) and (

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should mzi ltd sell product v or should it process v and sell g

Mzi Ltd produces two joint products, \\( V \\) and \\( F \\). The costs of common processing are R15 000 per batch, and output per batch is 100 units of \\( V \\) and 150 units of \\( F \\). The sales value of \\( V \\) at split-off point is R90 per unit, and the sales value for F is R60 per unit. An opportunity exists to process the product further, at an extra cost of \\( B 2000 \\) per batch, to produce prody \\( G \\). One unit of joint product \\( V \\) is sufficient to make one unit of \\( G \\) which has a sales value of R120 per unit

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