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Simmer company produced three joint products at a joint cost of $100,000. These products were processed further and sold as follows: The company has had
Simmer company produced three joint products at a joint cost of $100,000. These products were processed further and sold as follows: The company has had an opportunity to sell at split-off directly to other processor. If that alternative had been selected, total sales value would have been A = $56,000 B = $28,000 C = $56,000 The company expects to operate at the same level of production and sales in the forthcoming year. Which products should be processed further and which should be sold at split-off? (show your work) Could the company increase net income by altering its processing decisions? If so, what would be the expected overall net income? Don't forget to include the joint cost in your calculation of net income. (Show work)
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