Ajax Company currently produces three products from a joint process. The joint process has total costs of $508,000 per month. All three products, A, B & C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available:
|
Units |
Immediate Sales Price |
Later Sales Price |
Unit Cost of Further Processing |
| A |
5,110 |
$ |
15 |
$ |
16 |
$ |
8 |
| B |
17,560 |
$ |
18 |
$ |
31 |
$ |
3 |
| C |
10,330 |
$ |
17 |
$ |
35 |
$ |
3 |
|
| a-1. |
Should Product A be sold immediately or sold after processing further? |
| a-2. |
How much will the decision affect profit? (Input the amount as positive value. Omit in the "$'' sign in your response.) |
| Decision affect profit by |
$ |
| b-1. |
Should Product B be sold immediately or sold after processing further? |
| b-2. |
How much will the decision affect profit? (Input the amount as positive value. Omit in the "$'' sign in your response.) |
| Decision affect profit by |
$ |
| c-1. |
Should Product C be sold immediately or sold after processing further? |
| c-2. |
How much will the decision affect profit? (Input the amount as positive value. Omit in the "$'' sign in your response.) |
| Decision affect profit by |
$ |