ff per unit $15 $18 $24 Additional processing costs per unit $6 $6 $7 Joint production costs per unit $2 $5 $5 Sales value if processed further per unit $20 $22 $32
Ralston Tile produces three types of ceramic tiles, models 45, 51, and 56 from clay, which is mined in the Arizona desert. Budgeted data for next month follows:
45 51 56
Units produced 3,000 4,500 6,000
Sales value at split-off per unit $15 $18 $24
Additional
Joint production costs per unit $2 $5 $5
Sales value if processed further per unit $20 $22 $32
The joint cost of mining the clay is $80,000. Which of the products should be produced beyond the split-off point?
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Yes Yes Yes |
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Yes Yes No |
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No Yes Yes |
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No No Yes |
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Yes No No |
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