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Elizabeth Pharmaceutical produces several medicines. Each product can be sold at the split-off point or processed further. The following results apply to March: Elizabeth Pharmaceutical

Elizabeth Pharmaceutical produces several medicines. Each product can be sold at the split-off point or processed further. The following results apply to March:

Elizabeth Pharmaceutical produces several medicines. Each compound can be sold at the split-off point or processed further. The following results apply to March:

Product

Sales Value at Split-off Point

Costs of Additional Processing

Sales Value After Additional Processing

Savior I

$19,000

   $ 5,300

$26,000

Savior II

23,500

    10,500

33,000

Savior III

16,000

     9,500

25,000

Product

Incremental

revenue

Incremental cost

Profit or loss from

Additional processing

Savior I

_________

   $ 5,300

_________

Savior II

_________

    10,500

_________

Savior III

__________

     9,500

__________







After determining which products should be sold at the split-off point and which should be processed further, the TOTAL REVENUE provided by these three products would be

a. $84,000.      

b.$58,500         

c. $77,000             

d. $65,500

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