Home /
Expert Answers /
Accounting /
chemex-produces-three-products-a-b-and-c-from-the-same-common-input-x-50-000-pounds-of-x-will-pa563

Chemex produces three products (

`A,B`

, and

`C`

) from the same common input

`(x),50,000`

pounds of

`x`

will yield

`25,000lbs`

. of

`A,15,000lbs`

. of

`B`

, and

`10,000lbs`

. of C . The sales values at the split-off point of

`A,B`

, and C are

`$4`

per

`lb,$5`

per lb , and

`$6`

per lb , respectively. B can be sold at the split-off point or processed further at an additional cost of

`$20,000`

. If processed further, B can be sold for

`$6`

per Ib . There is no loss in the manufacturing process. Should B be sold at the split-off point or processed further and what is the difference in profit between the alternatives?