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Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge:...

Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows.

Sales Value and Additional
Costs If Processed Further
Product Pounds
Produced
Sales Value at Split-Off Final Sales
Value
Additional
Cost
Sea Tea 9,000 $ 60,000 $ 90,000 $ 35,000
Sea Paste 3,700 88,100 160,000 50,000
Sea Powder 2,000 70,000 85,000 14,000

Required:

A. What is the selling price per pound of Sea Paste at the split-off point at which the company is indifferent?

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