Avey Corporation has a joint process which produces three products, M, L and B. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $500,000. Other relevant data are as follows:

-To maximize profits, which products should Avey process further?
A) Product B only
B) Product L only
C) Product M only
D) Products M, L and B

Question

Avey Corporation has a joint process which produces three products, M, L and B. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $500,000. Other relevant data are as follows:
 
-To maximize profits, which products should Avey process further?
A) Product B only 
B) Product L only 
C) Product M only 
D) Products M, L and B

Quizplus · Accepted Answer

The Answer of Avey Corporation has a joint process which produces three products, M, L and B. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $500,000. Other relevant data are as follows:
 
-To maximize profits, which products should Avey process further?
A) Product B only 
B) Product L only 
C) Product M only 
D) Products M, L and B

Avey Corporation Has a Joint Process Which Produces Three Products