Balley, Inc. produces three milk products (all are main products) from a joint process costing $200,000. Data from the current periods operation follow:

Units Sales Price Separable Total Revenue After

Produced at Split-Off Costs further Processing

Regular 5,000 $5 $10,000 $ 40,000

Fat-free 15,000 7 16,000 120,000

2% 30,000 8 5,000 250,000

Which product(s) should be processed beyond the split-off point?

A. Regular and Fat-free only

B. Fat-free only

C. Regular and 2% only

D. all of the products

E. 2% only