American Chemical Company (ACC) manufactures two products as part of a joint process: A1 and B1. Joint costs up to the split-off point total $10,000. The joint costs allocated to A1 are $3,750 and to B1 are $6,250. At the split-off point A1 can be sold for $30,000, whereas B1 can be sold for $50,000. Product A1 can be processed further to make product A2, at an additional cost of $30,000. A2 can be sold for $75,000. Product B1 can be process further to make product B2, at an additional cost of $35,000. B2 can be sold bor $70,000. Which product should be processed further?

Select one:

a. A1

b. Both A1 and B1

c. B1

d. Neither product should be processed further