Kelp Company produces three jomt products fum sguweed. A the split-off point, three basic prod- ucts emerge: Sea Teu, Seu Paste, and Sea Powder. Fach of these products can either be sold at the pil-off point or be processed further. If they are processed further, the resulting products can de sold as delicacies to health food stores, Cou and revene information is as follow Sales Velue and Additional Costs It Processed Purther Final Sales Additional Cost Pounds Sales Value Product Produced at Split-Ot Value Sea Tea 9.000 S 90.000 $35,000 Sea Paste 4.000 B0.000 160,000 50,000 Sen Powder 2,000 70.000 85,000 14,000 Instructions a. Which products should Kelp prooesa heyond the split-ott poini? b. At what price per pound woald it be advantageous for Kelp Conmpany to sell Sea Paste at the split-off point rather than procesN It further?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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21.7A

Kelp Company produces three jont oroduers frum sgaweed. At the split-off point, three basic prod-
ucts emerge: Sea Tea, Seu Paste, and Sca Powder. Each of these products can eitier be wotd i
split-off point or be processed further, IE they are pocessed further, the resulting products can be
sold as delicacies to health food stores. Cou and revene infoemation is as follo
Sales Value and Additional
Costs If Propessed Further
Final Sales Additional
Value
Pounds
Sales Value
at Split-Off
Product
Cost
Produced
Sea Tea
S 90.000
9.000
4.000
$E0,000
$35,000
Sea Paste
B0,000
160,000
50,000
Sea Powder.
2,000
70.c00
85,000
14,000
Instructions
a. Which products should Kelp process beyond the split-ott poini?
b. At what price per pound would it be advantagcous for Kelp Company to sell Sea Paste at the
split-off point rather than process it fusther?
mny is Swamnton's "vec
Transcribed Image Text:Kelp Company produces three jont oroduers frum sgaweed. At the split-off point, three basic prod- ucts emerge: Sea Tea, Seu Paste, and Sca Powder. Each of these products can eitier be wotd i split-off point or be processed further, IE they are pocessed further, the resulting products can be sold as delicacies to health food stores. Cou and revene infoemation is as follo Sales Value and Additional Costs If Propessed Further Final Sales Additional Value Pounds Sales Value at Split-Off Product Cost Produced Sea Tea S 90.000 9.000 4.000 $E0,000 $35,000 Sea Paste B0,000 160,000 50,000 Sea Powder. 2,000 70.c00 85,000 14,000 Instructions a. Which products should Kelp process beyond the split-ott poini? b. At what price per pound would it be advantagcous for Kelp Company to sell Sea Paste at the split-off point rather than process it fusther? mny is Swamnton's "vec
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