Question

In: Accounting

Cellestial Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint...

Cellestial Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000.

If Processed Further
Sales Value Additional
Product Units Produced at Split-Off Costs Sales Value
A1 3,000 $10,000 $2,500 $15,000
B2 5,000   30,000   3,000   35,000
C3 4,000   20,000   4,000   25,000
D4 6,000   40,000   6,000   45,000


Which product(s) should be sold at split-off to maximize profits in the short run?

a. Product A1

b. Product D4

c. Product B2

d. Products A1 and D4

Solutions

Expert Solution

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

ekkarill92 answered 2 years ago
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