Phoenix Corporation Has a Joint Process That Produces Three Products

Multiple Choice

Phoenix Corporation has a joint process that produces three products: X,Y and Z.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $100,000.Other data follows: Processing Product Y beyond the split-off point will cause profits to ________.

A) decrease $1,000
B) decrease $26,000
C) increase $1,000
D) increase $26,000