Van Sickle Corporation has a joint process which produces three products, D, E and F. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $150,000. Other relevant data are as follows: Required:
a. Which products should Van Sickle process further?
b. What will be the effect on profits of processing each product further?

Question

Van Sickle Corporation has a joint process which produces three products, D, E and F. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $150,000. Other relevant data are as follows:  Required:
a. Which products should Van Sickle process further?
b. What will be the effect on profits of processing each product further?

Quizplus · Accepted Answer

The Answer of Van Sickle Corporation has a joint process which produces three products, D, E and F. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $150,000. Other relevant data are as follows:  Required:
a. Which products should Van Sickle process further?
b. What will be the effect on profits of processing each product further?

Van Sickle Corporation Has a Joint Process Which Produces Three