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A company uses a joint process to produce three products: A, B and C, all derived from one input. The company can sell these products

A company uses a joint process to produce three products: A, B and C, all derived from one input. The company can sell these products at the point of split-off or process them further. The joint production costs during October were $10,000. The company allocates joint costs to the products in proportion to the relative physical volume of output. Additional information is presented below. Units Product Produced Unit Sales Price at Split-off Unit Sales If Processed Further Unit Additional Price Cost A 1,000 $4.00 $5.00 $0.75 B 2,000 2.25 4.00 1.20 1,500 3.00 3.75 0.90 Assuming sufficient demand exists, to maximize profits, the company should sell Multiple Choice product C at split-off and perform additional processing on products A and B. product B at split-off and perform additional processing on products C and A. product A at split-off and perform additional processing on products B and C. products A, B, and C at split-off

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