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Lisle Corporation Has a Joint Process That Produces Three Products

Question 139

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Lisle 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:
 Sales Value Separable Processing Sales Value Product at Split-OffCosts after Split-Off  at CompletionP$12$9$21G10317A15619\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 & \$ 9 & \$ 21 \\G&10 & 3 & 17 \\A&15 & 6 & 19\end{array}
Product G ________.


A) should be sold at split-off point to maximize profits
B) should be processed further to increase profits by $30,000
C) should be processed further to increase profits by $40,000
D) should be processed further to increase profits by $70,000

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