Lamar Corporation has a joint process,which produces three products called A,B and C.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $10,000.Other relevant data are:
Required:
A)Which products should be processed further? Why?
B)If the Lamar Company maximizes profits,what is the operating income?

Question

Lamar Corporation has a joint process,which produces three products called A,B and C.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $10,000.Other relevant data are:
  Required: 
A)Which products should be processed further? Why? 
B)If the Lamar Company maximizes profits,what is the operating income?

Quizplus · Accepted Answer

The Answer of Lamar Corporation has a joint process,which produces three products called A,B and C.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $10,000.Other relevant data are:
  Required: 
A)Which products should be processed further? Why? 
B)If the Lamar Company maximizes profits,what is the operating income?

Lamar Corporation Has a Joint Process,which Produces Three Products Called