The manager at the Farmers Market in Virginia pays $600,000 to process 200,000 pounds of compost and converts it into fertilizer to sell to local farmers.During this process,30,000 pounds of the compost were contaminated,yielding 40,000 pounds of lightweight mulch and 120,000 pounds of heavyweight mulch.
The lightweight mulch can be sold at $10 per pound,and the heavyweight mulch can be sold at $5.00 per pound.
The 40,000 pounds of lightweight mulch can be processed further to yield 35,000 pounds into hardwood mulch at additional processing costs of $300,000.The hardwood mulch can be sold at $28 per pound.
The 120,000 pounds of heavyweight mulch can be further processed to yield 40,000 pounds of redwood mulch at additional processing costs of $280,000.The redwood mulch can be sold at $23 per pound.
Should the manager at the Farmer's Market sell the joint products,lightweight mulch and heavyweight mulch,at the splitoff point,or further process them into hardwood mulch and redwood mulch? Show all work.

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The Answer of The manager at the Farmers Market in Virginia pays $600,000 to process 200,000 pounds of compost and converts it into fertilizer to sell to local farmers.During this process,30,000 pounds of the compost were contaminated,yielding 40,000 pounds of lightweight mulch and 120,000 pounds of heavyweight mulch.
The lightweight mulch can be sold at $10 per pound,and the heavyweight mulch can be sold at $5.00 per pound.
The 40,000 pounds of lightweight mulch can be processed further to yield 35,000 pounds into hardwood mulch at additional processing costs of $300,000.The hardwood mulch can be sold at $28 per pound.
The 120,000 pounds of heavyweight mulch can be further processed to yield 40,000 pounds of redwood mulch at additional processing costs of $280,000.The redwood mulch can be sold at $23 per pound.
Should the manager at the Farmer's Market sell the joint products,lightweight mulch and heavyweight mulch,at the splitoff point,or further process them into hardwood mulch and redwood mulch? Show all work.

The Manager at the Farmers Market in Virginia Pays $600,000