Inc. 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:

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:

Which products should be processed further?

Multiple Choice

A and B

A and C

A, B, and C

B and C

\begin{tabular}{cccc} Product & Selling Price & Quarterly Output \\ A & $ & 3 per pound & 10,000 pounds \\ B & $ & 7 per pound & 22,000 pounds \\ C & $ & 13 per gallon & 5,000 gallons \\ \hline \end{tabular} \begin{tabular}{cccc} Product & Selling Price & Quarterly Output \\ A & $ & 3 per pound & 10,000 pounds \\ B & $ & 7 per pound & 22,000 pounds \\ C & $ & 13 per gallon & 5,000 gallons \\ \hline \end{tabular}