Hamilton, Inc

Multiple Choice

Hamilton, Inc. produces three products using a joint process which provides for $350,000 in joint costs. The products X, Y and Z can be sold at split-off or processed further and then sold. The production level for each product is 5,000 units. The following unit information is also available:

-Once X is produced, processing it further will cause profits to

A) increase by $120,000.
B) stay the same.
C) decrease by $120,000.
D) increase by $24 per unit.