RECOMMENDED!!Joint Products for Mussina Chemical Company

  

Joint Products for Mussina Chemical CompanyThe Mussina Chemical Company produced three joint products
at a joint cost of $117,000. These products were processed further and sold as
follows.Chemical product Sales Additional processing CostsA $230,000 $190,000B 330,000 300,000C 175,000 100,000The company has had an opportunity to sell at split off
directlly to other processors. If that alternative had been selected, sales
would have been A, $54,000; B, $28,000;and C, $54,000.The company expects to operate at the same level of
production and sales in the forthcoming year.Consider all the available information, and assume that all
costs incurred after split off are variable.1. Could the company increase operating income by altering
its processing decisions?
2. Which products should be processed further and which
should be sold at split off?

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