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# Chen Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Larco, Marco,...

Chen Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Larco, Marco, and Narco. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of \$180,149 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Each numbers follows the top rows respectfully from left to right.

 Sales Value at Split-Off Point Allocated Joint Costs Cost to Process Further Sales Value of Processed Product Larco \$219,824 \$40,105 \$110,774 \$299,321 Marco 300,038 59,966 84,728 400,493 Narco 404,089 80,078 249,078 799,763
Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

 Narco (last row to the right of Marco) Larco Marco Incremental profit (loss) \$ \$ \$

Indicate whether each of the three joint products should be sold as is, or processed further.

 Larco Processed furtherSold as is Marco Sold as isProcessed further Narco Processed furtherSold as is

The way to answer this question is ... View the full answer

Sales Value at Split-Off Point 219824
300038
404089 Larco
Marco
Narco Incremental revenue
Incremental cost
Incremental profit Allocated Joint Costs
40105
59966
80078 Cost to Process Further
110774...

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