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Mickey Company manufactures three joint products: X, Y, and Z. The cost of the joint process is $23,000. Information about the three products follows:
Mickey Company manufactures three joint products: X, Y, and Z. The cost of the joint process is $23,000. Information about the three products follows: Anticipated production Selling price/lb. at split-off Additional processing costs/lb. after split-off Y IN 5,500 lbs. 9,200 lbs. 2,000 lbs. $1.50 $1.75 $3.25 (all variable) Selling price/lb. after further processing Allocated joint costs $1.50 $1.50 $0.25 $2.75 $4.50 $5.75 $11,300 $10,200 $8,000 A. Determine whether each product should be sold at split-off or processed further. Product X Y N Decision B. Determine the firm's income if the firm processed all three products beyond split-off. A
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