1. Atlanta Manufacturing Company produces products A, B, C, and D through a joint process. The joint costs amount to $100,000.

Atlanta Manufacturing Company data

Product

Units Produced

Sales Value at Split-Off

Additional Costs of Processing

Sales Value After Processing

A

1,500

$10,000

$2,500

$15,000

B

2,500

$30,000

$3,000

$35,000

C

2,000

$20,000

$4,000

$25,000

D

3,000

$40,000

$6,000

$45,000

1. If A is processed further, profits of A will:

Increase by $2,500

Increase by $10,000

Increase by $12,500

Decrease by $22,500