Purple Corporation has a joint process that produces three products: P,G and A.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $25,000.The production level for each product is 10,000 units.Other data follows: To maximize profits,Purple Corporation should process ________ further.
A)Product P only
B)Product G only
C)Product A only
D)Products P,G and A

Question

Purple Corporation has a joint process that produces three products: P,G and A.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $25,000.The production level for each product is 10,000 units.Other data follows:  To maximize profits,Purple Corporation should process ________ further.
A)Product P only 
B)Product G only 
C)Product A only 
D)Products P,G and A

Quizplus · Accepted Answer

The Answer of Purple Corporation has a joint process that produces three products: P,G and A.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $25,000.The production level for each product is 10,000 units.Other data follows:  To maximize profits,Purple Corporation should process ________ further.
A)Product P only 
B)Product G only 
C)Product A only 
D)Products P,G and A

Purple Corporation Has a Joint Process That Produces Three Products