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. Suppose Product B2 is processed further.What will be the effect on profits?
$\begin{array}{lrrrr}&&&\text { If Processed Further }\\&\text { Units}&\text { Sales Value }&\text { Additional }&\text {Sales }\\\text { Product } & \text { Produced } & \text { at Split-Off } & \text { Costs } & \text { Value } \\\text { A1 } & 3,000 & \$ 10,000 & \$ 2,500 & \$ 15,000 \\\text { B2 } & 5,000 & 30,000 & 3,000 & 35,000 \\\text { C3 } & 4,000 & 20,000 & 4,000 & 25,000 \\\text { D4 } & 6,000 & 40,000 & 6,000 & 45,000\end{array}$

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.