Assume a company has two productsA and Bthat emerge from a joint process. Product A has been allocated $24,000 of the total joint costs of $48,000. A total of 2,000 units of Product A are produced from the joint process. Product A can be sold at the split-off point for $16 per unit, or it can be processed further for an additional total cost of $14,000 and then sold for $25 per unit. What is the financial advantage (disadvantage) of further processing Product A?

Multiple Choice

1) $(4,000)

2) $4,000

3) $22,000

4) $(22,000)