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company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per quarter.

company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:
Product
Selling Price
Quarterly Output
A
$
4
per pound
10,000
pounds
B
$
7
per pound
22,000
pounds
C
$
10
per gallon
5,000
gallons
Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:
Product
Additional
Processing Costs
Selling Price
A
$
53,000
$
7
per pound
B
$
38,000
$
10
per pound
C
$
18,000
$
19
per gallon
Which products should be processed further?
Multiple Choice
A and B
A, B, and C
A and C
B and C

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