CUIK-545 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

A

B

C

$

$

$

Selling Price

4 per pound

7 per pound

12 per gallon

Quarterly Output

10,000 pounds

22,000 pounds

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:

Additional

Product

Processing Costs

53 000

38 000

$

18.000

Selling Price

7 per pound

11 per pound

$ 19 per gallon

Which products should be processed further?

01-12:47

Multiple Choice

A and C

A and B

A. B. and C

B and C