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SELL OR PROCESS FURTHER, BASIC ANALYSIS Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold
SELL OR PROCESS FURTHER, BASIC ANALYSIS Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for the current year are as follows: Units Allocated Joint Sales Value Product Produced Production Cost at Split-off R 8,000 $32,000 $76,000 J 10,000 40,000 71,000 5,000 20,000 48,000 Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $48,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $14,000 and can then be sold for $57,000. Required: Which products should be processed beyond the split-off point? Show all calculations
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