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What is the difference in profit if lido decides to process

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Lido Products produces two products (A and B) from a joint process. The joint cost of production is $80,000. Five thousand units of Product A can be sold at split-off for $20 per unit or processed further at an additional cost of $20,000 and sold for $25 per unit. Ten thousand units of Product B can be sold at split-off for $15 per unit or processed further at an additional cost of $20,000 and sold for $16 per unit.

Question 1: What is the difference in profit if Lido decides to process further Product A, instead of selling it at split-off?

Reference no: EM132562196

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