Corrosion chemical co produces several chemical compounds

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Corrosion Chemical Co. produces several chemical compounds. Each compound can be sold at the split-off point or processed further. The following results apply to October 2012:

Compound

Sales Value at Split-off Point

Costs of Additional Processing

Sales Value After Additional Processing

Chem I

$59,600

$7,300

$74,400

Chem II

70,700

17,500

82,600

Chem III

46,700

6,200

55,500

Corrosion's manager was asked which products should be sold at the split-off point and which should be processed further. Complete the following analysis started by the manager.
A. Based on the following, what should they recommend?
B. What would total revenue be if they sell each of the chemicals at their most profitable point? (Points : 6)

Reference no: EM13573160

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