Refina divides petroleum into three types of fuel (A, B, C). The joint cost of processing 600 barrels is $30,000. The joint products have the following characteristics:

Joint Product	Number of Barrels	Price per Barrel
A	100	$150
B	300	70
C	200	30

Is the joint cost $30,000 lower than the total revenue generated from 600 barrels on petroleum?

Select one:

True

False

B) What is the profit of each product if joint costs are allocated according to the number of barrels? Use the joint costs at $30,000.

Select one:

a.

Profit of Fuel A is $10,000. Profit of Fuel B is $6,000.

Profit of Fuel C is negative $4,000.

b.

Profit of Fuel A is $10,000. Profit of Fuel B is negative $6,000.

Profit of Fuel C is negative $4,000.

c.

Profit of Fuel A is $10,000. Profit of Fuel B is negative $6,000.

Profit of Fuel C is $4,000.

d.

Profit of Fuel A is negative $10,000. Profit of Fuel B is $6,000.

Profit of Fuel C is $4,000.