Breegle Company produces three products (B-40, J-60, and H-102) from a single process.Breegle uses the physical volume method to allocate joint costs of $22,500 per batch to theproducts. Based on the following information, which product(s) should Breegle continue toprocess after the split-off point in order to maximize profit? B-40 J-60 H-102Physical units produced per batch 1,500 2,000 3,200Market value per unit at split-off $10.00 $4.00 $7.25Cost per unit of further processing after split-off $3.05 $1.00 $2.50Market value per unit after further processing $12.25 $5.70 $9.75 a. B-40 onlyb. J-60 only c. H-102 onlyd. B-40 and H-102 only
Breegle Company produces three products (B-40, J-60, and H-102) from a single process.
Breegle uses the physical volume method to allocate joint costs of $22,500 per batch to the
products. Based on the following information, which product(s) should Breegle continue to
process after the split-off point in order to maximize profit?
B-40 J-60 H-102
Physical units produced per batch 1,500 2,000 3,200
Market value per unit at split-off $10.00 $4.00 $7.25
Cost per unit of further processing after split-off $3.05 $1.00 $2.50
Market value per unit after further processing $12.25 $5.70 $9.75
a. B-40 only
b. J-60 only
c. H-102 only
d. B-40 and H-102 only
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