Stars Unlimited produces four products through a joint process that incurs costs of $150,000. Information for these products is as follows: If Virgo is processed further, profits will
A)increase by $1,000.
B)decrease by $1,000.
C)increase by $39,000.
D)increase by $40,000.

Question

Stars Unlimited produces four products through a joint process that incurs costs of $150,000. Information for these products is as follows:  If Virgo is processed further, profits will
A)increase by $1,000. 
B)decrease by $1,000. 
C)increase by $39,000. 
D)increase by $40,000.

Quizplus · Accepted Answer

$45,000 - $40,000 - $6,000 = $1,000 decrease ,final sales value - sales at split-off - further processing costs = increase (decrease)

Stars Unlimited Produces Four Products Through a Joint Process That