Undertaker Corporation Has a Joint Process That Produces Three Products

Multiple Choice

Undertaker 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.Other relevant data are as follows: $\begin{array}{rlc} && \text { Separable } & \\&& \text { Processing } & \\&\text { Sales Value } & \text { Costs after } & \text { Sales Value } \\\text { Product } & \text {at Split-off } & \text { Split-off } & \text { at Completion }\\\mathrm{P} & \$ 62,000 & \$ 5,000 & \$ 88,000 \\\mathrm{G} & 12,500 & 6,500 & 19,000 \\\mathrm{~A} & 9,400 & 5,000 & 12,000\end{array}$ Product G _____.

A) should be processed further to increase profits by $6,500
B) should be sold at split?off since processing further would only reduce profits by $6,500
C) should be processed further to increase profits by $19,000
D) can be processed further or sold at split?off; there is no difference in profit.