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Assume a company has three products A , B , and C that emerge from a joint process. The selling prices and outputs for each

Assume a company has three productsA, B, and Cthat emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows:
Product Selling Price Output
A $ 33 per pound 14,000 pounds
B $ 29 per pound 18,000 pounds
C $ 24 per pound 19,000 pounds
Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows:
Product Additional Processing Costs Selling Price
A $ 65,000 $ 37 per pound
B $ 72,000 $ 34 per pound
C $ 88,000 $ 30 per pound
What is financial advantage (disadvantage) of further processing if the company decides to further process all three products?
Multiple Choice
$35,000
$15,000
$25,000
$30,000

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