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Dumpster Company Produces Three Products Using a Joint Process That

Question 116

Multiple Choice

Dumpster Company produces three products using a joint process that accumulates $25,000 in joint costs.The products, A, B, and C, can be sold at split?off or processed further and then sold.The production level for each product is 1,000 units.The following unit information is also available:  Separable  Processing  Sales Value  Costs after  Sales Value  Product at Split-off  Split-off  at Completion A$12$9$21 B10417C15619\begin{array}{rlc} && \text { Separable } & \\&& \text { Processing } & \\&\text { Sales Value } & \text { Costs after } & \text { Sales Value } \\\text { Product} & \text { at Split-off } & \text { Split-off } & \text { at Completion }\\\mathrm{A} & \$ 12 & \$ 9 & \$ 21 \\\mathrm{~B} & 10 & 4 & 17 \\\mathrm{C} & 15 & 6 & 19\end{array} If Dumpster Company makes the decisions that maximize profit, Dumpster Company's net income will be _____.


A) $47,000
B) $32,000
C) $30,000
D) $15,000

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