Which of the following is most likely the reason that Kell Bells charges a higher price for bats than for spindles?

A. The cost of producing bats is lower than the cost of producing spindles

B. Kell Bells must charge a price for bats that is comparable to their competitors prices

C. Customers will pay more for bats because they value them more than spindles

D. Kell Bells can make higher margins on bats than it can on spindles.

Kell Bells is a hmber-processing company that produces two main products: wooden spindles for outdoor railings and wooden baseball bats. The company puts its humber through a common production process in which it incurs direct-material, direct-labor, and overhead costs up to a split-off point, after which the spindles and baseball bats become identifiable as different products. Below are the joint production costs incurred up to the split-off point for the past month. Direct material $1,500 Direct labor $2,000 Overhead $3,500 Total $7,000 In order to get the two products in final saleable form, Kell Bells must incur additional processing costs as follows. Spindles Baseball bats $3,200 $4,000 The spindles are sold in packs, with a sales value of $50 per pack. The baseball bats sell for $100 per bat. The amount of wood used in one pack of spindles is the same as the amount of wood used for one bat. During the past month, 500 packs of spindles and 750 baseball bats were manufactured. In order to determine the gross profit of each product separately, Kel Bells allocates its joint production costs to its products using a physical-quantity approach The company has recently experienced a spike in employee work related injuries, because employees often fai, to wear the protective gear while on the production line. In order to improve employee safety, managers have considered changing both individual employee behaviors and the organization's safety culture