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Waterway There produces a variety of soy products from soybeans and has just finished its first year of operations. Edward, the product manager, wants to
Waterway There produces a variety of soy products from soybeans and has just finished its first year of operations. Edward, the product manager, wants to evaluate the profitability of each product. Edward knows the process works essentially like this: the soybeans are processed in the company's manufacturing facility at a cost of $394,000, yielding both soy oil and soymeal. The soy oil can then be processed further into mayonnaise, while the soymeal can be processed further into animal feed. The quantities produced and sales values at the split-off point are as follows. Using the sales value at split-off method, allocate the joint costs to the soy oil and the soymeal. (Round proportion to 4 decimal places, e.s. 0.2516 and final answers to 0 decimal places, e.g. 5,125.)
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