Vitamin Bits Co. produces three joint products from mint leaves. At the split-off point, three basic products emerge: B1, B3, and B15. Each of these products can be either sold at the split-off point or processed further. If they are processed further, the resulting products can be sold to high-end health food stores. Cost and revenue information is as follows:

Instructions

a. Which products should Vitamin Bits process beyond the split-off point?

b. At what price per pound would it be advantageous for Vitamin Bits to sell B3 at the split-off point rather than process itfurther?

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Sales Value and Additional Costs If Processed Further Pounds Sales Value Final Sales Additional Produced at Split-Off Value Cost 10,000 $110,000 $200,000 $50,000 60,000 110,000 21,000 в, B3 100,000 90,000 180,000 5,000 3,000 15