Sanford Agricultural Chemicals (SAC) produces two main products, M-4 and M-5, and one by-product, BYP, from a single input, Gen-10. Products M-4 and M-5 can either be sold at split-off or processed further and sold. A given batch begins with 2,500 pounds of Gen-10 with a cost of $160,000. Additional information regarding a batch follows: Units Product Produced 20,000 12,000 4,000 M-4 M-5 BYP Sanford Agricultural Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs. Multiple Choice Unit Sales Value at Split-off $ 8.25 M-4 M-5. 17.50 0.90 If Processed Further Additional Costs (Per Unit) Required: Under these assumptions, the following product(s) should be processed further and then sold: $ 1.80 7.00 Both M-4 and M-5. Sales Value (Per Unit) $15.00 25.00

Sanford Agricutural Chemicais (SAC) produces two main products, M-4 and M-5, and one by product, EYP. from a shyle input, Gen-10. Froducts M-4 and M.5 can either be sold at split off or processed further and sold. A given batch begins with 2.500 pounds of Gen.10 with a cost of $160.000 Addtionat information regarding a batch follown Sanford Agricultural Chemicals utes the plypical quantses method to alocate joint costs and the revenues from by-products are creoted to joint costs Required: Under these assumptions, the folowing producti) should be processed furtive and then soid Wrye cmoice MA M.5 Foot M-4 and M.5 Required: Under these assumptions, the following product(s) should be processed further and then sold: Multiple Chaice M-4. Both M4 and M Neather M-4 nor M-5 Cannot teil from the information given