Woodridge Corporation Has a Joint Process That Produces Three Products

Multiple Choice

Woodridge 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 1,000 units.Other data follows:
$\begin{array}{llll}&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\\ \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\\P & \$ 12 & \$ 9 & \$ 21 \\G & 10 & 4 & 17 \\A & 15 & 6 & 19\end{array}$
Assume Woodridge Corporation processes the joint products beyond the split-off point that will maximize net income.Woodridge Corporation's net income is ________.

A) $12,000
B) $15,000
C) $17,000
D) $25,000