Cambridge Company Manufactures Three Main Products, L, M, and N

Multiple Choice

Cambridge Company manufactures three main products, L, M, and N, from a joint process. Additional information for June production activity follows:

Assuming that the 10,000 units of N were processed further and sold for $78,000, what was Cambridge's gross profit from this sale? Assume the physical quantities method of allocation is used.

A) $21,000.
B) $28,500.
C) $30,000.
D) $66,000.