Bars Manufacturing Company Produces Products A1,B2,C3,and D4 Through a Joint

Multiple Choice

Bars Manufacturing Company produces Products A1,B2,C3,and D4 through a joint process.The joint costs amount to $200,000. $\begin{array}{rrrrr}&&&\text { If Processed Further }\\&\text { Units }&\text { Sales Value }&\text {Additional}&\text { Sales }\\\text { Product }&\text { Produced }&\text { Sales split-Off }&\text { Costs }&\text { Value }\\A 1 & 3,000 & \$ 10,000 & \$ 2,500 & \$ 15,000 \\\mathrm{~B} 2 & 5,000 & 30,000 & 3,000 & 35,000 \\\mathrm{C} 3 & 4,000 & 20,000 & 4,000 & 25,000 \\\mathrm{D} 4 & 6,000 & 40,000 & 6,000 & 45,000\end{array}$ Suppose Product B2 is processed further.What will be the effect on profits?

A) Profits will decrease by $3,000.
B) Profits will increase by $2,000.
C) Profits will increase by $30,000.
D) Profits will increase by $32,000.