a b and c

b and c

a and c

Gusler company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $98,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A $ Selling Price 3 per pound 7 per pound 14 per gallon Quarterly Output 10,000 pounds 22,000 pounds 5,000 gallons B $ $ Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs Selling Price A $ 53,000 $ 7 per pound B $ 38,000 $ 12 per pound 18,000 $ 18 per gallon $ Which products should be processed further? Multiple Choice A and B