Zoie makes 2 products from a common input Each product may be sold at the split off point or processed further The following is known about each product Product 1 Product 2 Allocated joint processing costs 11300 12300 Sales value at split off point 34500 13600 Costs of further processing 13600 13300 Sales value after further processing 43700 42500 What is the minimum amount the company should accept if Product 1 is sold at the split off point

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Question: Zoie makes 2 products from a common input. Each product may be sold at the split-off point or processed further. The following is known about

Zoie makes 2 products from a common input. Each product may be sold at the split-off point or processed further. The following is known about each product:

	Product 1	Product 2
Allocated joint processing costs	11300	12300
Sales value at split-off point	34500	13600
Costs of further processing	13600	13300
Sales value after further processing	43700	42500

What is the minimum amount the company should accept if Product 1 is sold at the split-off point?

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