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?
A)TX14 only
B)KS63 only
C)TX14 and KS63 only
D)NJ35 and KS63 only

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?
A)TX14 only 
B)KS63 only 
C)TX14 and KS63 only 
D)NJ35 and KS63 only

Quizplus · Accepted Answer

11ea7998_5c65_1661_911b_a99cf6e8f604_TB2627_00_TB2627_00 NJ35 and KS63 should be processed further, but TX14 should be sold at the split-off point.
Reference: CH11-Ref1
Ouzts Corporation is considering Alternative A and Alternative B.Costs associated with the alternatives are listed below: 11ea7998_5c65_1662_911b_bba82bc2a619_TB2627_00_TB2627_00

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