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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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