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General Motors manufactures three main products from a common input in a joint processing operation. Joint processing costs up to the split-off point are as follows: The company allocates these costs to the joint products on-the-basis of their total sales at the split-off point. Each of the products may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product, on an annual basis, are: The "Further Processing Costs" consist of variable and avoidable fixed costs. Required: Which product or products should be sold at the spilt-off point, and which product or products should be processed further? Show computations
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