Question

Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows:


Instructions
a. Which products should Kelp process beyond the split-off point?
b. At what price per pound would it be advantageous for Kelp Company to sell Sea Paste at the split-off point rather than process itfurther?


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  • CreatedApril 17, 2014
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