Soren Company Makes Two Products from a Joint Input That

question 32

Multiple Choice

Soren Company makes two products from a joint input that have the following information: $\begin{array}{lrrrr}&\text { Units } & \text { Sales Value } & \text { Total Additional } & \text { Sales Value } \\&&\text { Per Unit } & \text { Processing } & \text { Per Unit After } \\&\text { Produced } & \text { At Split-Off } & \text { Costs } & \text { Additional Processing }\\\hline\text { Product A } & 40,000 & \$ 10 & \$ 400,000 & \$ 15 \\\text { Product B } & 150.000 & 4 & 300,000 & 7\end{array}$ The joint cost incurred to produce the two products to the split-off point is $600,000. Which product(s) should be processed further?

• A) A
• B) B
• C) Neither A nor B
• D) Both A and B