[SOLVED] Dynamic Business Environment

Dynamic Business Environment

Lamont Industries produces chemicals for the swimming pool industry. In one joint process, 10,000 gallons of GSX are processed into 7,000 gallons of xenolite and 3,000 gallons of banolide. The cost of the  joint process, including the GSX, is $19,000. The firm allocates $13,300 of the joint cost to the xenolite  and $5,700 of the cost to the banolide. The 3,000 gallons of banolide can be sold at the split-off point  for $2,500, or be processed further into a product called kitrocide. The sales value of 3,000 gallons of  kitrocide is $10,000, and the additional processing cost is $8,100.
Required: Lamont’s president has asked your consulting firm to make a recommendation as to  whether the banolide should be sold at the split-off point or processed further. Write a letter providing  an analysis and a recommendation.  Day
Hilton, Ronald. Managerial Accounting: Creating Value in a Dynamic Business Environment (p. 648). McGraw-Hill Higher Education.
ISBN-13: 978-1260566390

Lamont Industries produces chemicals for the swimming pool industry. In one joint process, 10,000 gallons of GSX are processed into 7,000 gallons of xenolite and 3,000 gallons of banolide. The cost of the  joint process, including the GSX, is $19,000. The firm allocates $13,300 of the joint cost to the xenolite  and $5,700 of the cost to the banolide. The 3,000 gallons of banolide can be sold at the split-off point  for $2,500, or be processed further into a product called kitrocide. The sales value of 3,000 gallons of  kitrocide is $10,000, and the additional processing cost is $8,100.
Required: Lamont’s president has asked your consulting firm to make a recommendation as to  whether the banolide should be sold at the split-off point or processed further. Write a letter providing  an analysis and a recommendation.  Day
Hilton, Ronald. Managerial Accounting: Creating Value in a Dynamic Business Environment (p. 648). McGraw-Hill Higher Education.
ISBN-13: 978-1260566390 Write a letter providing  an analysis and a recommendation.  Day Write a letter providing  an analysis and a recommendation.  Day