Orange Corporation Has a Joint Process That Produces Three Products

Multiple Choice

Orange 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.The production level for each product is 10,000 units.Other data follows: If Product P is processed beyond the split-off point,profit will ________.

A) increase $90,000
B) increase $120,000
C) increase $210,000
D) stay the same