Profit from Processing Further Deaton Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value of the products at the split-off point. Additional information for Deaton Corporation follows:

	A	B	C	Total
Units produced	30,000	20,000	10,000	60,000
Joint costs	$ 360,000	$ 150,000	$ 90,000	$ 600,000
Sales value before additional processing	600,000	250,000	150,000	1,000,000
Additional costs for further processing	70,000	50,000	30,000	150,000
Sales value if processed further	700,000	300,000	175,000	1,175,000

Required:

2a. For each of the three products (A, B, and C), calculate the differential benefit (loss) from processing the product after the split-off point rather than selling the product at the split-off point. (Loss amounts should be indicated with a minus sign.)

2b. Which, if any, of products A, B, and C should be processed further and then sold?

multiple choice

• Product A

• Product B

• Product C

• None of the above

• All of the above