Benjamin Signal Company produces products R, J, and C from a joint production process.Each product may be sold at the split-off point or be processed further.Joint production costs of $92, 000 per year are allocated to the products based on the relative number of units produced.Data for Benjamin's operations for the current year are as follows: Product R can be processed beyond the split-off point for an additional cost of $26, 000 and can then be sold for $105, 000.Product J can be processed beyond the split-off point for an additional cost of $38, 000 and can then be sold for $117, 000.Product C can be processed beyond the split-off point for an additional cost of $12, 000 and can then be sold for $57, 000.
Required:
Which products should be processed beyond the split-off point?

Question

Benjamin Signal Company produces products R, J, and C from a joint production process.Each product may be sold at the split-off point or be processed further.Joint production costs of $92, 000 per year are allocated to the products based on the relative number of units produced.Data for Benjamin's operations for the current year are as follows:  Product R can be processed beyond the split-off point for an additional cost of $26, 000 and can then be sold for $105, 000.Product J can be processed beyond the split-off point for an additional cost of $38, 000 and can then be sold for $117, 000.Product C can be processed beyond the split-off point for an additional cost of $12, 000 and can then be sold for $57, 000.
Required:
Which products should be processed beyond the split-off point?

Quizplus · Accepted Answer

The Answer of Benjamin Signal Company produces products R, J, and C from a joint production process.Each product may be sold at the split-off point or be processed further.Joint production costs of $92, 000 per year are allocated to the products based on the relative number of units produced.Data for Benjamin's operations for the current year are as follows:  Product R can be processed beyond the split-off point for an additional cost of $26, 000 and can then be sold for $105, 000.Product J can be processed beyond the split-off point for an additional cost of $38, 000 and can then be sold for $117, 000.Product C can be processed beyond the split-off point for an additional cost of $12, 000 and can then be sold for $57, 000.
Required:
Which products should be processed beyond the split-off point?

Benjamin Signal Company Produces Products R, J, and C from a Joint