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Business, 29.10.2019 02:31 taygotclout4786

General chemical company (gcc) manufactures two products as part of a joint process: a1 and b1. joint costs up to the split-off point total $22,000. the joint costs are allocated to a1 and b1 in proportion to their relative sales values. at the split-off point, product a1 can be sold for $42,000, whereas product b1 can be sold for $63,000. product a1 can be processed further to make product a2, at an incremental cost of $38,000. a2 can be sold for $85,000. product b1 can be processed further to make product b2, at an incremental cost of $48,000. b2 can be sold for $95,000. the net change in operating income resulting from a decision to manufacture product b2 is:

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