Down Corporation Has a Joint Process That Produces Three Products

Multiple Choice

Down Corporation has a joint process that produces three products: P,G and A.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $25,000.Other data follows: Processing Product G beyond the split-off point will cause profits to ________.

A) increase $1,000
B) increase $6,500
C) increase $7,500
D) increase $20,000