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

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. Which product(s) should be sold at split-off to maximize profits in the short run?

A) Product A1
B) Product D4
C) Product B2
D) Products A1 and D4