60.1K
Verified Solution
Link Copied!
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows:
| | | | | If Processed Further |
Product | Units Produced | Sales Value at Split-Off | Additional Costs | Sales Values |
W-10 | 64,400 | $ | 384,000 | | $ | 41,400 | | $ | 420,000 | |
W-20 | 46,000 | | 330,000 | | | 33,000 | | | 384,000 | |
W-30 | 36,800 | | 222,000 | | | 22,200 | | | 276,000 | |
W-40 | 36,800 | | 168,000 | | | 13,800 | | | 184,000 | |
| 184,000 | $ | 1,104,000 | | $ | 110,400 | | $ | 1,264,000 | |
|
Required:
Which, if any, of the four products would you recommend Deming & Sons sell at split-off (and not process further)?
-
W-10
-
W-20
-
W-30
-
W-40
-
None of the products
Answer & Explanation
Solved by verified expert