Stars Unlimited produces four products through a joint process that incurs costs of $150,000. Information for these products is as follows: If Gemini is processed further, profits will
A)increase by $2,500.
B)decrease by $2,500.
C)increase by $12,500.
D)increase by $10,000.

Question

Stars Unlimited produces four products through a joint process that incurs costs of $150,000. Information for these products is as follows:  If Gemini is processed further, profits will
A)increase by $2,500. 
B)decrease by $2,500. 
C)increase by $12,500. 
D)increase by $10,000.

Quizplus · Accepted Answer

$15,000 - $10,000 - $2,500 = $2,500 increase ,final sales value - sales at split-off - further processing costs = increase (decrease)

Stars Unlimited Produces Four Products Through a Joint Process That