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Cellestial Manufacturing Company Produces Products A1, B2, C3, and D4

question 21

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Cellestial Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000.  If Frocessed Further  Sales Value Additional  Product  Units Produced at Split-Off  Costs  Sales Value A13,000$10,000$2,500$15,000 B2 5,00030,0003,00035,000C34,00020,0004,00025,000D46,00040,0006,00045,000\begin{array}{rrrrr}&&&\text { If Frocessed Further }\\&&\text { Sales Value} & \text { Additional }\\\text { Product } & \text { Units Produced } & \text {at Split-Off } &\text { Costs } & \text { Sales Value }\\A 1 & 3,000 & \$ 10,000 & \$ 2,500 & \$ 15,000 \\\text { B2 } & 5,000 & 30,000 & 3,000 & 35,000 \\\mathrm{C3} & 4,000 & 20,000 & 4,000 & 25,000 \\\mathrm{D} 4 & 6,000 & 40,000 & 6,000 & 45,000\end{array} Which product(s) should be sold at split-off to maximize profits in the short run?

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