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Bars Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000. If Processed Further Additional Costs

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Bars Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000. If Processed Further Additional Costs Sales value Product Units Produced Sales Value at Split- Off A1 3.000 $10,000 $2,500 B2 5,000 30,000 3,000 C3 4,000 20,000 4,000 D4 6,000 40,000 6,000 Suppose Product B2 is processed further. What will be the effect on profits? $15,000 35,000 25,000 45,000 Profits will increase by $2,000 Profits will increase by $5,000 Profits will decrease by $3,000 Profits will increase by $32.000 Information about three joint products follows: A B Anticipated production 5,000 Kg 1,000 Kg 2,000 Kg Selling price /Kg at split-off $10 $30 $16 Additional processing costs/kg after split-off (all $6 $12 $24 variable) Selling price kg after further processing $20 $40 $50 The cost of the joint process is $60,000. Which of the joint products should be sold at split-off? O joint product A O joint product joint product B non of the joint products

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