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Jenny Inc. produces several products from processing wolvotron, a rare mineral. Joint processing costs total...

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Question

Accounting

Jenny Inc. produces several products from processing wolvotron, a rare mineral. Joint processing costs total $
40
,
000
per tonne, one
-
third of which is allocated to the product evamantium. The evamantium produced from a tonne of wolvotron can either be sold at the split
-
off point for $
45
,
000
,
or be processed further at a cost of $
15
,
000
into adamantium and then sold for $
65
,
000
.
Answer this question with the information given above.
Should the company sell evamantium or adamantium?

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