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Stars Manufacturing Company Produces Products A1, B2, C3, and D4  If Processed Further \text { If Processed Further }

Question 83

Multiple Choice

Stars Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000.
 If Processed Further \text { If Processed Further }
Sales Value Additional Product Units Produced  at Split-Off  Costs  Sales Value A13,000$10,000$2,500$15,000 B25,00030,0003,00035,000C34,00020,0004,00025,000D46,00040,0006.00045,000\begin{array}{rrrrr}&&\text {Sales Value}&\text { Additional}\\\underline{\text { Product} } &\underline{\text { Units Produced }} & \underline{\text { at Split-Off }} & \underline{\text { Costs }} &\underline{\text { Sales Value }}\\ \mathrm{A} 1 & 3,000 & \$ 10,000 & \$ 2,500 & \$ 15,000 \\\mathrm{~B} 2 & 5,000 & 30,000 & 3,000 & 35,000 \\\mathrm{C} 3 & 4,000 & 20,000 & 4,000 & 25,000 \\\mathrm{D} 4 & 6,000 & 40,000 & 6.000 & 45,000\end{array}

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


A) Product A1and Product C3
B) Product A1 and Product D4
C) Product B2 and Product D4
D) Product C3 and Product B2

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