Question: Autry Company manufactures veterinary products. One joint process involves refining a chemical ( dactylyte ) into two chemicals - dac and tyl . One batch
Autry Company manufactures veterinary products. One joint process involves refining a chemical dactylyte into two chemicals dac and tyl One batch of gallons of dactylyte can be converted to gallons of dac and gallons of tyl at a total joint processing cost of $ At the splitoff point, dac can be sold for $ per gallon and tyl can be sold for $ per gallon. Autry has just learned of a new process to convert dac into prodac. The new process costs $ and yields gallons of prodac for every gallons of dac. Prodac sells for $ per gallon.
Refer to Figure What is Autry's profit from refining one batch of dactylyte if both dac and tyl are sold at the splitoff point?
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