Use the Following Information for the Next 2 Questions

question 54

Multiple Choice

Use the following information for the next 2 questions.
A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows:
-Suppose a by-product is created continuously and sold for cash at the end of each day. If the proceeds of the by-product sales are used to reduce the joint production costs, an increase in the by-products sales value will

• A) Increase the profit reported for by-product sales
• B) Decrease the profit reported for by-product sales
• C) Decrease the gross margin reported by the main products
• D) Increase the gross margin reported by the main products

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Definitions:

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