Elizabeth Pharmaceutical produces several medicines. Each compound can be sold at the split-off point or processed further. The following results apply to March:
Medicines Sales Value at Split-off Point Costs of Additional Processing Sales Value After Additional Processing
Savior I $19,000 $5,300 $26,000
Savior II 23,500 10,500 33,000
Savior III 16,000 9,500 25,000
After determining which products should be sold at the split-off point and which should be processed further, the total revenue provided by these three products would be
$84,000.
$58,500.
$77,000.
$65,500.