2 Make sure you show your work. 3 4 Decision Making #1-Sell or Process Further Joint Product Decision 5 XYZ manufactures A and B from a joint process cost = $60,000. Three thousand pounds of A can be sold at split-off for $20 per pound or processed further at an 6 additional cost of $10,000 and then sold for $23. Nine thousand pounds of B can be sold at split-off for $14 per pound or processed further at an additional cost of $12,000 and later sold for $16. 7 8 Required: 9 Which products should be processed further or not? Why? Give the total dollar impact to income for each product based on your recommendation. I am not looking for per unit information, but how each decision will impact the company's income in total. 10 Recommendation: 11 12 13 14 15 16 17 18 19 20 Decision making #2-Use of Limited Resources-Singe Constraint 21 Bush Manufacturing has 20,000 labor hours available for producing M and N. Consider the following information: 22 23 24 25 26 27 Required: Required Labor per unit in hours Maximum demand in units Contribution Margin per unit M 2 9,000 $8.00 N 3 6,000 $15.00 28 What is the optimal product mix(how many M and N should be produced)? 29 You must provide the number of units to produce for each product at the optimal product mix and explain your answer along with supporting computations. 30 Recommendation: 31 32 33 34 25