1. Earl's Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately $9,000 in joint costs that Earl may allocate using the relative sales value at splitoff. Before splitoff, A-1 sells for $20,000 while B grade sells for $40,000. After an additional investment of $10,000 after splitoff, $3,000 for B grade and $7,000 for A-1, both the products sell for $50,000. Use relative sales value at split off to allocate joint costs to A-1 and B grade

Group of answer choices

a. A-1: $9,000 B grade: $0

b. A-1: $3,000 B grade: $6,000

c. A-1: $4,500 B grade: $4,500

d. A-1: $6,000 B grade: $3,000