Soren Company Makes Two Products from a Joint Input That

question 56

Multiple Choice

Soren Company makes two products from a joint input that have the following information: $\begin{array}{rrrrr}&&\text { Sales Value }&\text {Total Additional}&\text { Sales Value }\\&\text { Units } & \text { Per Unit } & \text { Processing } & \text { Per Unit After }\\&\text { Produced} & \text { At Split-Off }& \text { Costs} & \text { Additional Processing }\\\hline\text { Product A } & 40,000 & \$ 10 & \$ 400,000 & \$ 15 \\\text { Product B } & 150,000 & 4 & 300,000 & 7\end{array}$ 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

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