Question
Yellow Corporation has a joint process that produces three products: P, G and A.Each product may be sold at split-off or processed further and then
Yellow Corporation has a joint process that produces three products: P, G and A.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $25,000.The production level for each product is 10,000 units.Other data follows:
Sales ValueSeparable ProcessingSales Value
Productat Split-OffCosts after Split-Offat Completion
P$12$9$21
G10417
A15619
Product G ________.
Select one:
a.should be processed further to increase profits $40,000
b.should be sold at split-off point to maximize profits
c.should be processed further to increase profits $30,000
d.should be processed further to increase profits $70,000
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