Strawberry Company Produces Three Products Using a Joint Process That

Multiple Choice

Strawberry 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: $\begin{array}{rlc} && \text { Separable } & \\&& \text { Processing } & \\&\text { Sales Value } & \text { Costs after } & \text { Sales Value } \\\text { Product} & \text { at Split-off } & \text { Split-off } & \text { at Completion }\\\mathrm{A} & \$ 12 & \$ 9 & \$ 21 \\\mathrm{~B} & 10 & 4 & 17 \\\mathrm{C} & 15 & 6 & 19\end{array}$ Product C should be processed beyond the split-off point because _____.

A) incremental revenues will exceed incremental costs
B) incremental costs exceed incremental revenue
C) sales value at completion exceeds sales value at split-off
D) none of these answers is correct