Foster Corporation has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year are $40,000. Other relevant data are:

Sales Value at Split-Off

A $15,500

B 18,000

C 24,000

Separable Processing Costs After Split-Off A $2,200

B 8,000

C 11,500 Sales Value at Completion A $17,700

B 23,000

C 37,500 A) Which products should be processed further? Why?

B) If the Foster Company maximizes profits, what is the operating income?