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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