Center Company currently produces three products from a joint process.The joint process has total costs of $500,000 per month.All three products,A,B & C,are immediately saleable as they come out of the joint process.Alternatively,any of the products could continue on with additional processing and be sold as a more complete product.The following information is available:
a.Should Product A be sold immediately or sold after processing further? How much will the decision affect profit?
b.Should Product B be sold immediately or sold after processing further? How much will the decision affect profit?
c.Should Product C be sold immediately or sold after processing further? How much will the decision affect profit?

Question

Center Company currently produces three products from a joint process.The joint process has total costs of $500,000 per month.All three products,A,B & C,are immediately saleable as they come out of the joint process.Alternatively,any of the products could continue on with additional processing and be sold as a more complete product.The following information is available:
  a.Should Product A be sold immediately or sold after processing further? How much will the decision affect profit?
b.Should Product B be sold immediately or sold after processing further? How much will the decision affect profit?
c.Should Product C be sold immediately or sold after processing further? How much will the decision affect profit?

Quizplus · Accepted Answer

The Answer of Center Company currently produces three products from a joint process.The joint process has total costs of $500,000 per month.All three products,A,B & C,are immediately saleable as they come out of the joint process.Alternatively,any of the products could continue on with additional processing and be sold as a more complete product.The following information is available:
  a.Should Product A be sold immediately or sold after processing further? How much will the decision affect profit?
b.Should Product B be sold immediately or sold after processing further? How much will the decision affect profit?
c.Should Product C be sold immediately or sold after processing further? How much will the decision affect profit?

Center Company Currently Produces Three Products from a Joint Process