Falk Corporation has a joint process,which produces three products,Slow,Fast and Faster.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $30,000.Other relevant data are:
Required:
A)Which products should be processed further? Why?
B)If the Falk Company maximizes profits,what is the operating income?

Question

Falk Corporation has a joint process,which produces three products,Slow,Fast and Faster.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $30,000.Other relevant data are:
  Required: 
A)Which products should be processed further? Why? 
B)If the Falk Company maximizes profits,what is the operating income?

Quizplus · Accepted Answer

The Answer of Falk Corporation has a joint process,which produces three products,Slow,Fast and Faster.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $30,000.Other relevant data are:
  Required: 
A)Which products should be processed further? Why? 
B)If the Falk Company maximizes profits,what is the operating income?

Falk Corporation Has a Joint Process,which Produces Three Products,Slow,Fast and Faster.Each