BRIEF EXERCISE $9-10$

Determining Whether to Sell or Process Further $[$LO$3-$ CC$11]$

Jenny Inc. produces several products from processing wolvotron, a rare mineral. Joint processing costs total $$40,000$ per tonne, on of which is allocated to the product evamantium. The evamantium produced from a tonne of wolvotron can either be sold at the point for $$45,000,$ or be processed further at a cost of $$15,000$ into adamantium and then sold for $$65,000.$

Required:

Should the company sell evamantium or adamantium?