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Bismite Corporation purchases trees from Cheney lumber and processes them up to the split off point where two products (paper and pencil casing) are obtained.

Bismite Corporation purchases trees from Cheney lumber and processes them up to the split off point where two products (paper and pencil casing) are obtained. 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: 310 trees
Production: paper 180,000 sheets
pencil casings 180,000
Sales: paper 170,000 at $20 per page
pencil casings

177,500 at $24 per casing

The cost of purchasing 100 trees and processing them up to the splitoff point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Bismite's accounting department reported no beginning inventory.

What is the total sales value at split off point of paper?

a) 42600

b) 34000

c) 36,000

d) 43,200

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