A Company Manufactures Three Products, A, B, and C from a Single

Multiple Choice

A company manufactures three products, A, B, and C from a single raw material input. Product C can be sold at the split-off point for total revenues of $60,000 or it can be processed further at a total cost of $16,000 and then sold for $78,000. Product C:

A) should be sold at the split-off point, rather than processed further.
B) would increase the company's overall net income by $18,000 if processed further and then sold.
C) would increase the company's overall net income by $78,000 if processed further and then sold.
D) would increase the company's overall net income by $2000 if processed further and then sold.