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The Kirsten Company uses a joint process to produce products A, B, C and D. Each product may be sold at its split-off point or
The Kirsten Company uses a joint process to produce products A, B, C and D. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $32,500. Other relevant data are as follows: ales Value Sales Value at Split-Off $7,500 13,500 10,000 6,500 $37.500 Additional Costs of Processing $9,000 7,500 12,500 5,500 $34,500 Product of Final Product $22,500 20,000 15,000 12 500 $70,000 Calculate the effect on profits of processing each product beyond the split-off point Calculate the effect on profits of processing only those with a positive contribution beyond the split-off point
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