RECOMMENDED!!MBA 641-XYZ manufactures A and B from a joint process cost

  

Decision Making #1-Sell or Process Further Joint Product DecisionXYZ manufactures A and B from a joint process cost = $70,000. Six thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $20,000 and then sold for $23. Ten thousand pounds of B can be sold at split-off for $15 per pound or processed further at an additional cost of $13,000 and later sold for $17.Required: Which products should be processed further or not? Why? Give the dollar impact to income for each product based on your recommendation.Recommendation:Decision making #2-Use of Limited Resources-Singe ConstraintBush Manufacturing has 28,000 labor hours available for producing M and N. Consider the following information:M NRequired Labor per unit in hours 4 2Maximum demand in units 8,000 7,000Contribution Margin per unit $8 $7.50Required: What is the optimal product mix(how many M and N should be produced)? Explain your answer and show computations.Recommendation:

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