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A Corporation produces three products, A, B, and C, from a single raw material input. Product C can be sold at the splitoff point for

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A Corporation produces three products, A, B, and C, from a single raw material input. Product C can be sold at the splitoff point for $40,000, or it can be processed further at a total cost of $15,000 and then sold for $58,000. Joint costs total $60,000 annually. Product C should be: discontinued because revenues after further processing are less than total joint costs and results in a $2.000 disadvantage to processing further. Sold at the split-off point because there is a $18,000 advantage. processed further because its share of the total joint costs is less than the incremental revenues from further processing of $18,000. processed further and then sold because there is a $3,000 financial advantage

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