Geneva Powder Company Produces Body Powders in Batches Required:
(A)Determine Which Products Should Be Sold at Split-Off and Powder

Essay

Geneva Powder Company produces body powders in batches.Each type of powder can be sold in its current condition or processed further and specialized for high priced department stores.Data concerning the various products appear below.Joint processing costs are $200,000. $\begin{array}{|l|r|r|r|r|}\hline &&\text { Price } & & \\\hline \begin{array}{l}\text { Type of } \\\text { Ponder }\end{array} & \text { Number } & \text { per } & \text { Further } & \text { Price after } \\\text { Pound } & \text { Processing } & \begin{array}{r}\text { Processing } \\\text { Pounds }\end{array} & \begin{array}{r}\text { Offit } \\\text { Costs }\end{array} & \begin{array}{r|r|}\text { Further }\end{array} \\\hline \begin{array}{l}\text { Cosmetic } \\\text { Powder }\end{array} & 200,000 & \$ 10 & \$ 150,000 & \$ 11.50 \\\hline \begin{array}{l}\text { Medicated } \\\text { Powder }\end{array} & 400,000 & \$ 8 & \$ 60,000 & \$ 8.40 \\\hline \begin{array}{l}\text { Baby } \\\text { Powder }\end{array} & 50,000 & \$ 5 & \$ 80,000 & \$ 5.50 \\\hline\end{array}$ Required:
(a)Determine which products should be sold at split-off and which should be processed further.(b)Geneva Powder is approached by the Regis Department Store chain.Regis would like Geneva Powder to process regular powder into a special powder for its cosmetics department.At what price per pound would Geneva Powder be economically indifferent between selling the powder at the split-off point and processing it further for Regis?