InterValley Inc. is undergoing major changes at its managerial level. It is also about to appoint a new CEO. Although this information is strictly confidential and has not yet been told to the employees, almost every employee in the company knows about it and is anticipating major changes in the firm in the near future. In this context, the employees at InterValley Inc. gained knowledge of the changes taking place in the company even before receiving any official message through .

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer