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Ajax company currently produces three products from a joint

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Ajax Company currently produces three products from a joint process. The joint process has total costs of $508,000 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:


 Units Immediate
Sales
Price		 Later
Sales
Price		 Unit Cost of Further Processing
A 5,110   $ 15         $ 16         $ 8        
B 17,560   $ 18         $ 31         $ 3        
C 10,330 $ 17         $ 35         $ 3        

a-1. Should Product A be sold immediately or sold after processing further?

Sell now

Sell later
a-2. How much will the decision affect profit? (Input the amount as positive value. Omit in the "$'' sign in your response.)
  Decision affect profit by $   
b-1. Should Product B be sold immediately or sold after processing further?

Sell later

Sell now
b-2. How much will the decision affect profit? (Input the amount as positive value. Omit in the "$'' sign in your response.)
  Decision affect profit by $   
c-1. Should Product C be sold immediately or sold after processing further?

Sell later

Sell now
c-2. How much will the decision affect profit? (Input the amount as positive value. Omit in the "$'' sign in your response.)
  Decision affect profit by $   

Reference no: EM13577960

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