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XYZ Inc. produces two products, Product A and Product B. The production quantity and sales value in dollars of each of the products are shown

XYZ Inc. produces two products, Product A and Product B. The production quantity and sales value in dollars of each of the products are shown below:

Product A

Product B

Physical Measures (tons)

60,000

40,000

Sales Value

150,000

50,000

XYZ has incurred $100,000 in joint production costs to manufacture these products.

Based on the information provided, how much of the joint production costs would be allocated to Product A using the Relative Sales Value method?

Select one:

a. $75,000.

b. $40,000

c. $50,000.

d. $60,000..

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