General Chemical Company (GCC) manufactures two products as part of a joint process: A1 and B1. Joint costs up to the split-off point total $26,000. The joint costs are allocated to A1 and B1 in proportion to their relative sales values. At the split-off point, product A1 can be sold for $33,900, whereas product B1 can be sold for $79,100. Product A1 can be processed further to make product A2, at an incremental cost of $42,000. A2 can be sold for $89,000. Product B1 can be processed further to make product B2, at an incremental cost of $52,000. B2 can be sold for $99,000.

17. Joint costs allocated to product A1 total:

A. $7,800.

B. $18,200.

C. $13,000.

D. $26,000.

18. Joint costs allocated to product B1 total:

A. $7,800.

B. $18,200.

C. $13,000.

D. $26,000.

19. The net change in operating income resulting from a decision to manufacture product A2 is:

A. $55,100 (increase).

B. $13,100 (decrease).

C. $13,100 (increase).

D. $42,000 (increase).

20. The net change in operating income resulting from a decision to manufacture product B2 is:

A. $32,100 (increase).

B. $32,100 (decrease).

C. $52,000 (decrease).

D. $19,900 (increase).