Essay
Legacy Company currently produces three products from a joint process. The joint process has total costs of $1,200,000 per month. All three products, A, B & C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available: a. Should Product A be sold immediately or sold after processing further? How much will the decision affect profit?
b. Should Product B be sold immediately or sold after processing further? How much will the decision affect profit?
c. Should Product C be sold immediately or sold after processing further? How much will the decision affect profit?
Correct Answer:

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a. Sell now, $50,000: immediate 50,000 ×...View Answer
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