Mann Corporation has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $125,000. Other relevant data are as follows:

-Product B
A) should be processed further to increase profits by $32,500.
B) should be sold at split-off since processing further would only reduce profits by $32,500.
C) should be processed further to increase profits by $95,000.
D) can be processed further or sold at split-off. There is no difference in profit.

Question

Mann Corporation has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $125,000. Other relevant data are as follows:
 
-Product B
A) should be processed further to increase profits by $32,500. 
B) should be sold at split-off since processing further would only reduce profits by $32,500. 
C) should be processed further to increase profits by $95,000. 
D) can be processed further or sold at split-off. There is no difference in profit.

Quizplus · Accepted Answer

The Answer of Mann Corporation has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $125,000. Other relevant data are as follows:
 
-Product B
A) should be processed further to increase profits by $32,500. 
B) should be sold at split-off since processing further would only reduce profits by $32,500. 
C) should be processed further to increase profits by $95,000. 
D) can be processed further or sold at split-off. There is no difference in profit.

Mann Corporation Has a Joint Process, Which Produces Three Products