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Each day, Ivanhoe Corporation processes 1 ton of a secret raw material into two resulting...

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Accounting

Each day, Ivanhoe Corporation processes 1 ton of a secret raw material into two resulting products, AB1 and XY1. When it processes 1 ton of the raw material, the company incurs joint processing costs of $75,000. It allocates $40,000 of these costs to AB1 and $35,000 of these costs to xY1. The resulting AB1 can be sold for $115,000. Alternatively, it can be processed further to make AB2 at an additional processing cost of $40,000, and sold for $166,000. Each day's batch of xY1 can be sold for $108,000. Or, it can be processed further to create xY2, at an additional processing cost of $65,000, and sold for $145,000. What products should Ivanhoe Corporation make and sell.
The company should process
The company should not process , and sell
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