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:

-Product Y

A) should be processed further as this will increase profits by $30,000.
B) should be sold at split-off to maximize profits.
C) should be processed further to increase profits by $14 per unit.
D) can be processed further or sold at split-off, it makes no difference.