Question: Botticelli Plc manufactures two products from a joint process. Information about the two joint products is as follows: Product X Product Y Anticipated production

Botticelli Plc manufactures two products from a joint process. Information about the two joint products is as follows: Product X Product Y Anticipated production (in units) 10,000 15,000 Selling price per unit at split-off 60 100 Additional processing costs per unit after spilit-off (all variable) Selling price per unit after further processing 100 55 150 175 The total cost of the joint process is 1,750,000. Requirement a) Which of Botticelli Plc's joint products should be processed further? Briefly explain your reasons. 5 Marks b) Assume that Botticelli Pic currently sells both products at split-off point. What is Botticelli Plc's profit? 10 Marks c) Assume that Botticelli Plc makes decisions about the production strategy of its joint products in order to maximize profit. What is Botticelli Plc's profit? 10 Marks d) Briefly discuss the difference between joint and by-products, providing relevant examples.

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