Hamilton, Inc. produces three products using a joint process which provides for $350,000 in joint costs. The products X, Y and Z can be sold at split-off or processed further and then sold. The production level for each product is 5,000 units. The following unit information is also available:

-To maximize profits, which products should Hamilton process further?
A) Product X only
B) Product Y only
C) Product Z only
D) Products X, Y and Z

Question

Hamilton, Inc. produces three products using a joint process which provides for $350,000 in joint costs. The products X, Y and Z can be sold at split-off or processed further and then sold. The production level for each product is 5,000 units. The following unit information is also available:
 
-To maximize profits, which products should Hamilton process further?
A) Product X only 
B) Product Y only 
C) Product Z only 
D) Products X, Y and Z

Quizplus · Accepted Answer

The Answer of Hamilton, Inc. produces three products using a joint process which provides for $350,000 in joint costs. The products X, Y and Z can be sold at split-off or processed further and then sold. The production level for each product is 5,000 units. The following unit information is also available:
 
-To maximize profits, which products should Hamilton process further?
A) Product X only 
B) Product Y only 
C) Product Z only 
D) Products X, Y and Z