Benjamin Signal Company Produces Products R,J,and C from a Joint

question 114

Essay

Benjamin Signal Company produces products R,J,and C from a joint production process.Each product may be sold at the split-off point or be processed further.Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced.Data for Benjamin's operations for the current year are as follows:

$\begin{array}{lccc}\text { Product } & \begin{array} { l } \text { Units } \\\text { Produced }\end{array} & \begin{array} { l } \text { Allocated Joint } \\\text { Production Cost }\end{array} & \begin{array} { c } \text { Sales Value } \\\text { at Split-off }\end{array} \\\hline \mathrm { R } & 8,000 & \$ 32,000 & \$ 76,000 \\\mathrm {~J} & 10,000 & 40,000 & 71,000 \\\mathrm { C } & 5,000 & 20,000 & 48,000\end{array}$

Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000.

Required:

Which products should be processed beyond the split-off point?

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Definitions:

Transformational Leaders

are those who inspire and motivate followers by creating a vision for the future, instilling pride, and encouraging innovation and creativity.

Individualized Consideration

Individualized consideration is a leadership behavior where leaders attend to the needs of each follower, acting as mentors or coaches, and fostering their personal development.

New Vision

Fresh or innovative outlook, strategy, or idea intended to guide the direction of an organization or project.

LMX Differentiation

focuses on the variability of leader-member exchange relationships within a team, indicating that a leader may have different quality relationships with various members.