Bailey Products produces two joint products (A and B). Prior to the sp

Bailey Products produces two joint products (A and B). Prior to the split-off point, the company incurs costs of $6,000. Product A weighs 30 pounds, and Product B weighs 120 pounds. Product A sells for $100 per pound, and Product B sells for $35 per pound.Based on a physical measure of output, allocate joint costs to Products A and B.Compare the costs to the selling prices. Should the company sell products whose selling price is less than the allocated joint cost?

Bailey Products produces two joint products (A and B). Prior to the sp

Bailey Products produces two joint products (A and B). Prior to the split-off point, the company incurs costs of $6,000. Product A weighs 30 pounds, and Product B weighs 120 pounds. Product A sells for $100 per pound, and Product B sells for $35 per pound.Based on a physical measure of output, allocate joint costs to Products A and B.Compare the costs to the selling prices. Should the company sell products whose selling price is less than the allocated joint cost?