DesPlaines Corporation Has a Joint Process That Produces Three Products

Multiple Choice

DesPlaines 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:
$\begin{array}{llll}&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\\ \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\\P & \$ 12 & \$ 8 & \$ 20 \\G & 10 & 4 & 17 \\A & 15 & 6 & 19\end{array}$
If Product P is processed beyond the split-off point,profits will ________.

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