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A company makes joint products a and b with $120000 joint processing costs. at the split off point 10000 units of a and 9000 units of b are produced with selling prices of $1.20 for a and $1.50 for b. the units of a could be further processed to make 8000 units of c. extra costs incurred for this $1600 of fixed and variable costs of $0.50 per unit of input. what would be the outcome if product a is further processed. ?
i worked out c’s profit as ,
2.25 * 8000 – 1600 – (0.50*10000) = 11400
can you help me from there.
You have not said exactly what the question wants – does it ask what the profit will be?
If it does then there is not enough information because what you have typed does not give the selling price for product C.
This is more of a Paper F2 type of question and not very likely for Paper F5.
(Why are you attempting a question for which you do not have a printed answer?)