Fine Pottery Processors manufactures two products, platters and tureens, from a joint process. Platters are allocated $5000 of the total joint costs of $25,772. There are 1,500 platters produced and 1,500 tureens produced each year. Platters can be sold at the split-off point for $12 per unit, or they can be processed further into a deluxe platter for additional processing costs of $4,906 and sold for $15 for each deluxe platter.
Fine Pottery Processors manufactures two products, platters and tureens, from a joint process. Platters are allocated $5000 of the total joint costs of $25,772. There are 1,500 platters produced and 1,500 tureens produced each year. Platters can be sold at the split-off point for $12 per unit, or they can be processed further into a deluxe platter for additional
What is the difference in operating income by processing the platters further versus selling them off at the split off point? If income is higher by processing the platters further, input your number as a positive number. If income is lower by processing the platters further, input your number as a negative number.
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