raho c

Crux Avg uvl meHhed ae m a pen ut

Vauiua 3 e - Ratio ot phypical oupt

Ciantn buhen mangin

Ca . .Frad
. Cant-ah cantmbuhm
manleet value cae
value c a e in
n4 vel pu
Lmanlec value (T )
Manlet

chopt en-9 OHor

Oro du G
Jofn 2 y

chepea OvenvieLd
Jofn processS
Common procesg

2proOuCt 4 Furthen pro@uct A t

prC
aFeiaD, la bou 20H urhen protais 1

JoTnt cos peuct th pduct B agt

poos

Separahtn pcinp,
split@r pin
Contept 2
oheHez Pre@ucF <hewd
COncept
e u r t h e proei h o t
HoD o apporon joint Cost

Natunne Joint prosuctCo prdelud 1 peech

proauct aare
Hore han
emergepdeu e homhe sane

proces SaUne mote

)9 pro@uc ale havin

equa) imcrtonu

OutPut prooucts fn nofuro X ex

portion

ZAdiieATASNADdasp.
 JofntproBuch

a o
hre
roduCt Gan be sold onl at spit 9K6 stage
Cohcep S kurthen. po Cessi

urthen processi
proauct
Canbe sod
on OgR
sP i t K point)
There Ps rice + at

producE Can be a
Sold both staae haufna
matkel at both seLqes at spliF E poin
eat urEthe pocessim).
also af

Appr Honme.nt joint (ost.

( Nehod

a) on the basis physPcol outp at pi t t stage

p r o u ch outpy Sepor hon o i

nih
A SdoD

Distrbuh
r a h o u n t

200

SDoDOD
JDint (oS is T

A SO0o
JDintpas
w

oput t t
fthe grq
 Soluho - stalement shooi APperhonmen joinE Cost
Parhccu Iars B
2000
sepmidn pofn sDOS 300D

TOint Cos E SOOOCo in S: 3: 2 2S0000 000 10DOoD

Avernge. unit Cos Hethol

Averoqe unit Co Tora oint cos
p t a nih at splitoBs print.

Sole bove tos Hetho

sol
usia usi cuerge u t

Aremae unit cost 9 Pe unit.

D s b u k aa y

Ppionmnt
l u t

C) r|ce ulue aF sep ra hon point plF 5 Poi nt Hethod

pro@u DutpL gt Split Poin HV peuital spli

oOOD
SODOO

(o is ISDODCD
Join
NDte Market Value o entire Ouhput t separation Point

/1, 26D 2 2o0,00

2505030 so,mx - 2So,0gt
Sol2 ConAiom 40,0r030 12W,bb
selet L29:9S:12
Aaho Rah24:2512
 porhulan
P 0/c00
SDOD

n i h produo
at spli Ppin
N Poin
value P:u a+ SPuE 6 2120
re Z209
5 Pin
value o ouput atsplit
Morte+
6s98S 3IS189
12 252631
SDOCoe in 20: '
Joint CO

ethtd

prceihe
urhen
rCetV tLae aEE
MVP aktn uteL
atte Furthn
proceiSin
n1h
NO U
proauch
220 Pu
PO
201000

Join cos 1BDIUO

pperhonrnetgjoint (oS
sol? staknent 0 N
pathculay. 1s0 OD

wnih aPte kwhen prDcei

No

E800000
H c e vslue a t t e u h e pnto»si
Join Cos 139quo in 82. PS60000R4O 3000

Take Rahio ot Manke Vale CTohal) aten funhe ocesir oEach modut
diatobuhen f oint Cogt

Roho
:29
 Ne eslîsa be value NRV) qSP1it tPDin Mehd

n
NRU -
MoeF value afHe, processina
wwwMAwwwwwwmmod wmmmv
Cos Sell Rxpen S ett
AlL exs aken separaonpoin l be deductel

produch Fuurthen proits i

cos
sellina MV t a unkhe
Expense* procesd în
A 3ood0O 2200oDD 19,0000dd
C 20o0o
D
26OCo0
oocoo
Joint cos ojUDIUOD
satenent ghoLBing Ppnon men sjoint cb
Parbculan D
Hareet valye atk uhe proces 0& 6 1S
ess sellin r e 200000
less Futen paasin 300000 QouDo
e 2e»lisnbe volue 20OooD STOoOD
 Arpa?homant

VaualeJont oat> Phsical ouhput

Hxed Joint Cost Cmhmbuhn

conbuhon ho ehor
SR APpion vaniabe o i n t cost on h e basia physia 1

Output
oh tibuho
STp 2 Apporßon Axed joint cos on he sasis

Conmbufon s a l e - v a i a ble cosh

Sse le vvolue
Pro@ucb Onib
0DDO 30060O
N
00DDD
fDOODD

10o0D

Joint (ast vaable EtdoDOD

Rxed a0000D

sal aemen Pprion men joint Cost

p>Ficula o
NO O wnip 101000 1o1000 1000 19
2soooDD in 1211 1OODDO 200000 00ODO
vaase jojnt (os
3ODoDDGO00DD DOODD
ess vosiab le joit Cost. loo00D) (ooot») 10oop) Ctoyoo).
Conbußdo 20000D 2000004DDDd
xed oint (ost } 2:2:4:O in

ora oin Costualable+ Fye.)

19Drd5 000DD
 o ethect s

Sale-Po- Selling exp- fw her Cost oin tost

Puck A ProoucB ProucFc

Sqk 4000DO 20b00o SOOoO

selling XP CE v Sqk) S S

Fwther cot 1Ped

3oint os SDO0o

Souon statement cy ?Pprronmen s t CF

P tcul A

Sals oo00o 200Dodd footDo

Ep 5bo |201 IO0000

(l sellinp xp esio/s 0000

suur h e ( 1OO0oD
TDih C
Gien in Gn
Calulatiom
180 DOD 100
AasoD = 47So0o

MathTS T
RrooucEX Pruchy PructT
sql 200000O

Esote selling xP S S
Esmk p O 1S7,
further Coyt L0D00

DinCos is DO

Reauufrement:
Apporton joat 9
Caltalgle praG the onpau ppucoise & in D
 Soufo
n t cest.
shoojng
statemenE
ww.uiAMBetteeMheyereni

Parbuldr
pEal

20000D
sal
2
ess sellina &p S. I
10D00 20000
Esimaad joint Ceat 3125bd
yoD
Jbint ct 2oo lbo is: 40 16128o 113o os2D 31SDoD

n On gien Joint cAat *31S,o0 m aoe ditbuhen Jon Coat - 3125D

JoPnt Cost Mismatch ai STHt |

column T 3157

statement hosiz popitabili

parcalas 200OUD LSDOOD
Sale
les sellina exP
10,000
cct 16o0: I12r:4») 134 31SD
JoinE 1(1180

12720
Proot

pro@ucEP
Sale
selling 6KP7. ale
prsgt o saes

TOtatr Cost 1o000

 stae9ent hooi APP-boomen jint Cat

P t culbn R
Sa oocooD
15, aSZ
selling xp 2R

TDH oin Ct
en joint
2 6 SDoD

Ct
P

sale 0000d soDo

prop to sat) 20. 307.

20,00d
urthe C
in poPrhon
Jin cO 701DDO, LSelling es pen are

sale

Pta Isturtho cast

Sellin epense Tota sale Tbtap p
Teteo oin Ccs
2.D00oo+ 90)-(2o U2l+o/ipboTs4Dood+2opor)-

Staement opporhomenk U oint Ccs

porhiuoy
2000DO
Sal
poyih
SD 20009
selling xp >sDo6 Jn 200
y0000

Dint C (b1f)
H)

step 1 calcuak
P p t ( Grau ctnsan Hain }).
USe re vee cos eho

P o ucC
Prouct4 produc D

Sgle
1S%
selling exp (7 to s alas)
selling
t h e r co D0D

on cos is R 14S5DOD

soluion
Cal: o Gros conta Harin .
T sala LSoOoooG00OoDF7Ooo0o) 16o60oo

o sellim Poy GS240y.1 ++1S 23soo

30oo
TDaejoint C
ptae

(2AAe met u Pperbon ment juin (e

porscu |an
Sqle
e prSti 3./

selling pen
h e Cl
T Cost (b1f)
3
 furthe ProcesSina Decision
a increm entep 2evenue \ LR) Sale volue k e turthe
Ek e pruess kuthea) processin sale l e
a t split o point

b)CAementa0 CostLc) futhen

=
pro
PEOCessi

selling expeno atten r h e

r o cess i n

selli e p e n at iplit s

siuahDn Further process iaDecisionS

Yes
2) TR IC Cnditbenon
) ER TC NO

C eS
Fa Case L Case2 case Case 4
sale olue:
Lo,oooo 90000d
AFe fnthe prolks SOODOD
At Spli }poi SDOoOD 200DDD 60D0Do

Fuhenproteisra Co (o0bod LO,000

selling exp
iL iL
APter fnth proion
9000D NiL
4tSpli S point

So
sraement hocoig nte prooddedn
 IRVP Decisit
CnCemen rO Revenye Cnremen Cost

o0DODO-S9= 22. e

Chieren
o-sL sL

3 SR- (1) RTC

3-2 LA LLOIUDO

9 K -60 O00 120DoDtHo00-3901|dtod IRFC ye

NCe IF oothina i sprcile in queshon h e n

peenG
P eren Sale_Vølue s t splRE _point cH
Ne Reslinble value ehtl
2 Use revese co oehod iE eston pavicle
IloEi nformahn ehod PPnon
pe ihie
a) sale vo lue

F he loJE 1
eelli
Selli2erpee )
RvedRyed wher tos F and xed selli9 pe ne
are pocoi odei on

TOcae Sale Nalue aF

method, o j a r (oat Oppeione in Popeto U
Sale volue t sPit oUG Poit Nek T Sellln9
RpenP at Split n P eefen Pyo-& .
 CCCCLhtne
Phen

pro@uc

lerRe Jommeria m AlHer mfe

Y oint oauct.
PPkon jdint cod mong APr*ion
inclua Pach vlue P o uc amon
alcylak p ton ali poôucb intldi Hain rou onlg.
Puct.
cIcylk p n

ee B0 22)

Prouc B Bprouehx
Sale value. 2100ODS 23DOOoo
int C i3 30oCD o
Shoo apioLment sin ( eslculsk pr
P@uct is commecia item 2 ( praucf
fsnott a Commenuad item

psouct L ommenua0 item

aricqh»' X

2&
Junt c t>k n 2. 1SR s
p
( ) n y product isho omnenuaQ eny
parhtu lan
2 S

1-00 0 1 8 0 000 3ooDoO

Net joit C 300D00 ae Dy PouckX