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Category > Business & Finance Posted 04 Jun 2017 My Price 6.00

The Poison Chemical Company produces two joint products

 

The Poison Chemical Company produces two joint products, Alash and Pottum from the same process. Joint processing costs of $150,000 are incurred up to split-off point, when 100,000 units of Alash and 50,000 units of Pottum are produced. The selling prices at split-off point are $1.25 per unit for Alash and

$2.00 per unit for Pottum.

The units of Alash could be processed further to produce 60,000 units of a new chemical, Alashplus, but at an extra fixed cost of $20,000 and variable cost of 30c per unit of input. The selling price of Alashplus would be $3.25 per unit. Should the company sell Alash or Alashplus?

 

 

 
 

Answers

Alpha Geek
(8)
Status NEW Posted 04 Jun 2017 04:06 AM My Price 6.00

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Attachments

file 1496552444-1396975_1_636320652577444442_Processing-decision.xlsx preview (210 words )
13-----------969-----------75&-----------amp-----------;am-----------p;i-----------nfo-----------Id=-----------210-----------285----------- se-----------ll -----------or -----------pro-----------ces-----------s d-----------eci-----------sio-----------nTh-----------e P-----------ois-----------on -----------Che-----------mic-----------al -----------Com-----------pan-----------y p-----------rod-----------uce-----------s t-----------wo -----------joi-----------nt -----------pro-----------duc-----------ts,----------- Al-----------ash----------- an-----------d P-----------ott-----------um -----------fro-----------m t-----------he -----------sam-----------e p-----------roc-----------ess-----------. J-----------oin-----------t p-----------roc-----------ess-----------ing----------- co-----------sts----------- of----------- $1-----------50,-----------000----------- ar-----------e i-----------ncu-----------rre-----------d u-----------p t-----------o s-----------pli-----------t-o-----------ff -----------poi-----------nt,----------- wh-----------en -----------100-----------,00-----------0 u-----------nit-----------s o-----------f A-----------las-----------h a-----------nd -----------50,-----------000----------- un-----------its----------- of----------- Po-----------ttu-----------m a-----------re -----------pro-----------duc-----------ed.----------- Th-----------e s-----------ell-----------ing----------- pr-----------ice-----------s a-----------t s-----------pli-----------t-o-----------ff -----------poi-----------nt -----------are----------- $1-----------.25----------- pe-----------r u-----------nit----------- fo-----------r A-----------las-----------h a-----------nd -----------$2.-----------00 -----------per----------- un-----------it -----------for----------- Po-----------ttu-----------m.T-----------he -----------uni-----------ts -----------of -----------Ala-----------sh -----------cou-----------ld -----------be -----------pro-----------ces-----------sed----------- fu-----------rth-----------er
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