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Shynee Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each
Shynee Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as is, or they can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and selling price information is available for one batch of each product: Selling Price at Split-Off Point Allocated Joint Costs Cost to Process Further Selling Price of Processed Product Sarco $200,000 $40,000 $100,000 $310,000 Barco 300,000 60,000 89,000 380,000 Larco 500,000 80,000 250,000 800,000 Determine whether each of the three joint products should be sold as is, or processed further. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental Profit/Loss Amount Decision Sarco $ Barco $ Larco $
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