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?
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?
Chapter1: Financial Statements And Business Decisions
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