Delite Confectionary Company Produces Various Types of Candies

Multiple Choice

Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a different form after further processing. The candies are produced in a joint processing operation with $500,000 of joint processing costs monthly, which are allocated based on pounds produced. Information concerning this process for a recent month appears below:

-
The net advantage (disadvantage) of processing Sweet Meats further is:

A) a $25,000 disadvantage to process further.
B) a $32,143 advantage to process further.
C) a $25,000 advantage to process further.
D) a $282,143 disadvantage to process further.