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Brandon Machines manufactures a number of products from the same raw material. Joint processing costs total $10,000. Product A could be sold at the cut-off

Brandon Machines manufactures a number of products from the same raw material. Joint processing costs total $10,000. Product A could be sold at the cut-off point for $18,000 or it can be further processed at a cost of $9,000 and then sold for $35,000. Brandon should:

a) Further process product A because its incremental revenues will exceed incremental costs by $8,000.

b) Further process product A because its incremental revenues will exceed incremental costs by $26,000.

c) Sell as-is because the incremental loss is $2,000 if processed further.

d) Further process product A because its incremental revenues will exceed incremental costs by $16,000.

e) Further process because the incremental revenues will be $35,000.

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