Question: Arguillo Inc. is a 5 , 0 0 0 - acre farm that produces two products: Zilla and Corma. Zilla sells for $ 3 .

Arguillo Inc. is a 5,000-acre farm that produces two products: Zilla and Corma. Zilla sells for $3.50 per bushel (assume that a bushel weighs 60 pounds). Without further processing, Corma sells for $30 per ton (a ton equals 2,000 pounds). If the Corma is processed further, it can be sold for $45 per ton. Total joint cost up to the split-off point was $875,000. Arguillo produced 70 bushels of Zilla and 1 ton of Corma per acre. If all the Corma were processed further, separate costs would be $50,000

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