A company makes two products from a joint input that have the following infor

A company makes two products from a joint input that have the following
information:

Sales Value

Estimated further

Sales value after

Pounds

per pound

processing costs

additional processing

Produced

at split off

per pound

per pound

Corn oil

60000

$0.65

$0.45

$0.75

Corn meal

110000

$0.50

$0.55

$1.20

The joint cost incurred to produce the two products to the split off point is $130000

A. Assume that the joint cost is assigned using physical units at split off of each product.
How much joint cost would be allocated to each product?

B. Assume that the joint cost is allocated to the products based on the sales value at split
off of each product. How much joint cost would be allocated to each product?

C. Which product(s) should be processed further? Be sure to show all
calculations.

D. Which of the product(s) should be processed further? Be sure to explain the effect on
profit of the decision to process further or not to process further.