Question: Problem Data Joint Costs $90,000 Product Product A Product B Product C Units produced 5,000 3,000 4,000 Selling price at split off $25 $10 $15

 Problem Data Joint Costs $90,000 Product Product A Product B Product

Problem Data Joint Costs $90,000 Product Product A Product B Product C Units produced 5,000 3,000 4,000 Selling price at split off $25 $10 $15 Selling price after further processing $50 $40 $25 Additional processing costs $150,000 $45,000 13183 free n yellow highlighted ce REQUIRED 1 Complete the chart below (example on page 535 of text) to illustrate the financial advantage or disadvantage of further processing of each product. Be sure disadvantages appear as negative nunbers. Product A Product B Product C 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, which of the product(s) should be sold at the split off point and which processed further? (1 POINT) Sold at split off Processed further Product A Product B B Product C 2 2 3 Complete the schedule provided to compute the total profit earned if units are sold as indicated by your answer to question 2 (6 POINTS) Total Sales Total joint costs Total further processing costs Profit

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