Bismite Corporation purchases trees from Cheney lumber and processes them up to the split - off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 260 trees Production: paper pencil casings paper pencil casings 200,000 sheets 200,000 192,000 at $0.20 per page 196,500 at $0.23 per casing Sales: The cost of purchasing 260 trees and processing them up to the split - off point to yield 200,000 sheets of paper and 200,000 pencil casings is $13,500. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split off point of the pencil casings? A. $40,000 B. $46,000 C. $45,195 D. $38,400