Orange Manufacturing Company produces three products using a joint process which accumulates $25,000 in joint costs. The products, A, B, and C, can be sold at split- off or processed further and then sold. The production level for each product is 10,000 units. The following unit information is also available: $\begin{array}{llll}&&\text { Separable }\&&\text { Processing }\
& \text { Sales V alue at } & \text { Costs after } & \text { Sales Value at } \
\text { Product } & \text { Split- off } & \underline{\text { Split-off }} & \text { Completion }\
\mathrm{A} & \$ 12 & \$ 9 & \$ 21 \
\mathrm{~B} & 10 & 4 & 17 \
\mathrm{C} & 15 & 6 & 19
\end{array}$ To maximize profits, Orange Manufacturing Company should process further.
A) product A only
B) product B only
C) product C only
D) products A, B, and C

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The Answer of Orange Manufacturing Company produces three products using a joint process which accumulates $25,000 in joint costs. The products, A, B, and C, can be sold at split- off or processed further and then sold. The production level for each product is 10,000 units. The following unit information is also available: $\begin{array}{llll}&&\text { Separable }\&&\text { Processing }\
& \text { Sales V alue at } & \text { Costs after } & \text { Sales Value at } \
\text { Product } & \text { Split- off } & \underline{\text { Split-off }} & \text { Completion }\
\mathrm{A} & \$ 12 & \$ 9 & \$ 21 \
\mathrm{~B} & 10 & 4 & 17 \
\mathrm{C} & 15 & 6 & 19
\end{array}$ To maximize profits, Orange Manufacturing Company should process further.
A) product A only
B) product B only
C) product C only
D) products A, B, and C

Orange Manufacturing Company Produces Three Products Using a Joint Process