Faustina Chemical Corporation manufactures three chemicals (TX14,NJ35,and KS63)from a joint process.The three chemicals are in industrial grade form at the split-off point.They can either be sold at that point or processed further into premium grade.Costs related to each batch of this chemical process is as follows:
For which product(s)above would it be more profitable for Faustina to sell at the split-off point rather than process further?

Question

Faustina Chemical Corporation manufactures three chemicals (TX14,NJ35,and KS63)from a joint process.The three chemicals are in industrial grade form at the split-off point.They can either be sold at that point or processed further into premium grade.Costs related to each batch of this chemical process is as follows:
 For which product(s)above would it be more profitable for Faustina to sell at the split-off point rather than process further?

Quizplus · Accepted Answer

11ea7761_1605_4b5f_81a5_398f13e0746c_TB2580_00 NJ35 and KS63 should be processed further, but TX14 should be sold at the split-off point.

Faustina Chemical Corporation Manufactures Three Chemicals (TX14,NJ35,and KS63)from a Joint