Question
Subject name: Accounting & Finance Decision-Making Mangers The below problem is a Differential Analysis problem, including *****Sell or Process type problem*** Please utilize differential analysis
Subject name: Accounting & Finance Decision-Making Mangers
The below problem is a Differential Analysis problem, including *****Sell or Process type problem*** Please utilize differential analysis to solve the problems. Please show all work and responses in the answer with an explanation on each Excel worksheet
Question: Apex Corporation manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $100,000 per year. These costs are allocated to the joint products on the basis of their total sales value at the split-off point. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The sales values, additional processing costs, and the sales value after further processing for each product on an annual basis are shown below:
Product | Sales Value at Split-Off Point | Additional Processing Costs | Sales Value After Further Processing | |||
A | $ 60,000 | $ 20,000 | $ 90,000 | |||
B | $ 1,00,000 | $ 35,000 | $ 1,40,000 | |||
C | $ 70,000 | $ 17,000 | $ 85,000 |
Which product or products should be sold at the split-off point and which product or products should be processed further. Show all computers to support your answer.
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