Reference no: EM131611632

Question - Lastivika Company produces two products from a joint process. One batch yields 1,000 liters of cavasol and 4,000 of perosol. Cavasol can be sold at the splitoff point for $26 or can be processed further into caasette and sold for $32 per liter. 2% of these liters will evaporate in further processing. Total additional processing costs will be $2,300. The vavasette will have additional distribution costs of $0.90 per liter and additional sales commission of ten percent of sales.

Prepare an analysis report on the further processing of cavasol & state your decision.