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

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?