A company puts four products through a common production process. This process costs $100,000 each year. The four products can be sold when they emerge from this process at the "split-off point", or processed further and then sold. Data about the four products for the coming period are: Determine which products should be sold at the split-off point and which should be processed further.

Question

A company puts four products through a common production process. This process costs $100,000 each year. The four products can be sold when they emerge from this process at the "split-off point", or processed further and then sold. Data about the four products for the coming period are:  Determine which products should be sold at the split-off point and which should be processed further.

A Company Puts Four Products Through a Common Production Process