The Abraham Company produces three products - product A, Product B and Product C. Product A and B are the joint products. Product C has a relatively small market value and is therefore treated as a by-product.

During March, 8,000 units of product A, 10,000 units of product B and 2,000 units of product C were processed in refining department. The joint processing cost incurred in the refining department was 204,000.

Some additional data is given below:

Sales price per unit Production cost after separation Marketing and admin. expenses per unit Operating profit per unit Product A Product B Product C $20 $25 $5 5 7 1 1 1