Georgia Manufacturing Company produces products A, B, C, and D through a joint process. The joint costs amount to $250,000.
| Product |
Units Produced |
Sales Value at Split-Off |
Additional Costs of Processing |
Sales Value After Processing |
| A |
1,500 |
$20,000 |
$5,000 |
$30,000 |
| B |
2,500 |
$60,000 |
$6,000 |
$70,000 |
| C |
2,000 |
$40,000 |
$8,000 |
$50,000 |
| D |
3,000 |
$80,000 |
$12,000 |
$90,000 |
If A is processed further, profits of A will:
Decrease by $45,000
Increase by $10,000
Increase by $25,000
Increase by $5,000