Downers Grove Corporation Has a Joint Process That Produces Three

question 7

Multiple Choice

Downers Grove Corporation has a joint process that produces three products: P,G and A.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $25,000.The production level for each product is 10,000 units.Other data follows:
$\begin{array}{llll}&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\\ \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\\P & \$ 12 & \$ 10 & \$ 21 \\G & 12 & 4 & 17 \\A & 10 & 6 & 19\end{array}$
To maximize profits,Downers Grove Corporation should process ________ further.

• A) Product P only
• B) Product G only
• C) Product A only
• D) Products G and A only

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