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Purple Manufacturing Company Produces Three Products Using a Joint Process

Question 106

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Purple Manufacturing Company produces three products using a joint process that accumulates $25,000 in joint costs.The products, A, B, and C, can be sold at split?off or processed further and then sold.The production level for each product is 10,000 units.The following unit information is also available:  Separable  Processing  Sales Value  Costs after  Sales Value  Product at Split-off  Split-off  at Completion A$12$9$21 B10417C15619\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{A} & \$ 12 & \$ 9 & \$ 21 \\\mathrm{~B} & 10 & 4 & 17 \\\mathrm{C} & 15 & 6 & 19\end{array} To maximize profits, Purple Manufacturing Company should process _____ further.


A) product A only
B) product B only
C) product C only
D) products A, B, and C

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