Sealy Company Has a Joint Process,which Produces Three Products Called

question 143

Essay

Sealy Company has a joint process,which produces three products called A,B and C.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $20,000.Other relevant data are:
$\begin{array}{llll}&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\\ \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\\A&\$ 94,000 & \$ 28,000 & \$ 115,000 \\B&60,000 & 10,000 & 82,000 \\C&66,000 & 14,000 & 79,000\end{array}$
Required:
A) Which products should be processed further? Why?
B) If the Sealy Company maximizes profits, what is the operating income?

• A) Which products should be processed further? Why?
• B) If the Sealy Company maximizes profits, what is the operating income?

---

Definitions:

Immediate Pain

refers to the direct, often sharp sensation of discomfort or distress occurring at the moment of injury or ailment.

Sensory Neurons

Nerve cells responsible for converting external stimuli from the environment into internal electrical impulses for the brain to interpret.

Central Nervous System

The complex network of the brain and spinal cord that is responsible for processing and sending out all the signals that control the body.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the central nervous system to limbs and organs.