(Solved):Duiker Corporation has a joint process that produces three products: A, S, and B. Each product…

 

Question

Duiker Corporation has a joint process that produces three products: A, S, and B. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for the year amount to $30,000.

Other data follows:

PRODUCT SALES VALUE AT SPLIT-OFF SEPARABLE PROCESSING COSTS AFTER SPLIT-OFF SALES VALUE AT COMPLETION
A $28,000 $4,500 $35,000
S 10,000 7,000 20,000
B 8,300 7,200 11,000

Processing Product S beyond the split-off point will cause profits to _____.

 

EXPERT ANSWER

Let’s evaluate the additional revenues

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