Stars Unlimited produces four products through a joint process that incurs costs of $150,000. Information for these products is as follows: If Leo is processed further, profits will
A)increase by $1,000.
B)decrease by $1,000.
C)increase by $21,000.
D)increase by $20,000.

Question

Stars Unlimited produces four products through a joint process that incurs costs of $150,000. Information for these products is as follows:  If Leo is processed further, profits will
A)increase by $1,000. 
B)decrease by $1,000. 
C)increase by $21,000. 
D)increase by $20,000.

Quizplus · Accepted Answer

$25,000 - $20,000 - $4,000 = $1,000 increase ,final sales value - sales at split-off - further processing costs = increase (decrease)

Stars Unlimited Produces Four Products Through a Joint Process That