Figure 6-9
Stars Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to £200,000. $$\begin{array}{l}

\begin{array} { c c c c c }
&&&\text { If Processed Further }\
&& { \text { Sales Value } } & \text { Additional } \
\text { Product } & \text { Units Produced } & \text { at Split-Off } & \text { Costs } & \text { Sales 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}
\end{array}$$
-Refer to Figure 6-9. If Product B2 is processed further, profits will

Question

Figure 6-9
Stars Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to £200,000. $$\begin{array}{l}

\begin{array} { c c c c c } 
&&&\text { If Processed Further }\
&& { \text { Sales Value } } & \text { Additional } \
\text { Product } & \text { Units Produced } & \text { at Split-Off } & \text { Costs } & \text { Sales 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}
\end{array}$$
-Refer to Figure 6-9. If Product B2 is processed further, profits will

Quizplus · Accepted Answer

Processing Product B2 further increases its sales value from £30,000 to £35,000, a £5,000 increase. After accounting for the additional costs of £3,000, the net increase in profit is £2,000.

Figure 6-9 Stars Manufacturing Company Produces Products A1, B2, C3

Figure 6-9
Stars Manufacturing Company Produces Products A1, B2, C3