Question: Morrell Company produces several products from processing krypton, a rare mineral. Material and processing costs total $30,000 per ton, one-third of which are allocated to

Morrell Company produces several products from processing krypton, a rare mineral. Material and processing costs total $30,000 per ton, one-third of which are allocated to the product merifulon. The merifulon produced from a ton of krypton can either be sold at the split-off point, or processed further at a cost of $13,000 and then sold for $60,000. The sales value of merifulon at the split-off point is $40,000.

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Should merifulon be processed further or sold at the split-off point?


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