Benjamin Company produces products C, J, and R from a joint production process.
Each product may be sold at the split off point or processed further. Joint production costs of $95,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin’s operations for last year follow:
|
Additional sales values and costs if processed further |
||||
|
Product |
Units Produced |
Sales values at split off |
Sales values |
Added costs* |
|
C |
6,000 |
$75,000 |
$100,000 |
$20,000 |
|
J |
9,000 |
$70,000 |
$115,000 |
$36,000 |
|
R |
4,000 |
$46,500 |
$55,000 |
$10,000 |
*All variable and traceable to the products involved.
Required:
Which products should be processed beyond the split off point?