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SITUATION 6: Sell or Process Further AJ Corporation, manufactures several products from processing nylon. The material and processing costs total $100,000. $30,000 of the material
SITUATION 6: Sell or Process Further AJ Corporation, manufactures several products from processing nylon. The material and processing costs total $100,000. $30,000 of the material and processing costs can be allocated to nylon fabric product. AJ Corporation can sell the nylon fabric for $26/yard or process further and produce waterproof nylon fabric to sell for $35/yard. The additional processing costs would be $7,500. Should AJ Corporation sell at the split off point or process further? AJ Corp will sell 1,000 units
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