Business, 13.05.2021 23:20 alexabessin

Faustina Chemical Corporation manufactures three chemicals (TX14, NJ35, and KS63) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this chemical process is as follows: TX14 N335 KS63
Sales value at split-off point $16,000 $12,000 $5,000
Allocated joint costs $ 6,000 $ 6,000 $6,000
Sales value after further processing$20,000 $18,000 $9,000
Cost of further processing $5,000 $ 3,000 $2,000
For which product(s) above would it be more profitable for Faustina to sell at the split-off point rather than process further?

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Faustina Chemical Corporation manufactures three chemicals (TX14, NJ35, and KS63) from a joint proce...

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