Uptown Corporation Has a Joint Process That Produces Three Products

question 41

Multiple Choice

Uptown 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 $20,000.Other data follows:
$\begin{array}{llll}&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\\ \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\\P & \$ 32,000 & \$ 5,000 & \$ 39,000 \\G & 16,500 & 7,500 & 29,000 \\A & 6,400 & 8,000 & 10,000\end{array}$
Processing Product P beyond the split-off point will cause profits to ________.

• A) be unchanged
• B) increase by $2,000
• C) increase by $3,000
• D) increase by $7,000

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