Which products should be processed further or not


Problem

Decision-Making #1-Sell or Process Further Joint Product Decision

XYZ manufactures A and B from a joint process cost = $60,000. Three thousand pounds of A can be sold at split-off for $20 per pound or processed further at the additional cost of $11,000 and then sold for $25. Nine thousand pounds of B can be sold at split-off for $14 per pound or processed further at an additional cost of $10,000 and later sold for $15.

Task

Which products should be processed further or not? Why? Give the total dollar impact to income for each product based on your recommendation. I am not looking for per unit information, but how each decision will impact the company's income in total.

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Financial Accounting: Which products should be processed further or not
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