Jazzmyne Company Manufactures Two Products from a Joint Process The Cost of the Joint Process Is £1,750,000

question 26

Essay

Jazzmyne Company manufactures two products from a joint process. Information about the two joint products is as follows: $\begin{array}{lrr}&\text { Product X} & \text { Product Y}\\\text { Anticipated production (in units) } & 10,000 & 15,000 \\\text { Selling price per unit at split-off } & £ 60 & £ 100 \\\text { Additional processing costs per unit } & & \\\text { after split-off (all variable) } & £ 100 & £ 55 \\\text { Selling price per unit after further } \\\text { processing } & £ 150 & £ 175 \end{array}$ The cost of the joint process is £1,750,000.
a.Which of Jazzmyne's joint products should be processed further?
b.Assume that Jazzmyne currently sells both products at the split-off point. What is Jazzmyne's income?
c.Assume that Jazzmyne makes decisions about its joint products that maximize profit. What is Jazzmyne's income?

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