Data for problem
 

Joint Costs Product Product A Product B Product C Product A Product B Product C REQUIRED 1 2 3 $210,000 Units produced 2,500 1,300 2,000 Selling price after further processing $75 $90 $45 Product A Product B Product C Selling price at split off $50 per unit $40 per unit $30 per unit Additional processing costs $ 50,000 $ 70,000 $30,000 Complete the schedule below to illustrate the financial advantage or disadvantage of further processing of each product. Be sure disadvantages appear as negative numbers. Total Sales value after further processing Less sales value at split off Incremental revenue from further processing Less cost of further processing Financial advantage (disadvantage) of further processing Based on your chart in question 1, put an X in the relevant cell for each of the products to indicate whether it should be sold at split-off or processed further. Sold at split off Processed further Product A Product B Product C Complete the schedule provided to compute the total profit earned if units are sold as indicated by your answer to question 2 Total Sales Total joint costs Total further processing costs Profit