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E7-11 Chen Minerals

Price: $1.99

E7-11 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 $180,000 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.

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

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