Mann Corporation has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $125,000. Other relevant data are as follows:

-Once product A is produced, processing it further will cause profits to
A) increase by $40,000.
B) decrease by $20,000.
C) decrease by $40,000.
D) increase by $20,000.

Question

Mann Corporation has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $125,000. Other relevant data are as follows:
 
-Once product A is produced, processing it further will cause profits to
A) increase by $40,000. 
B) decrease by $20,000. 
C) decrease by $40,000. 
D) increase by $20,000.

Quizplus · Accepted Answer

The Answer of Mann Corporation has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $125,000. Other relevant data are as follows:
 
-Once product A is produced, processing it further will cause profits to
A) increase by $40,000. 
B) decrease by $20,000. 
C) decrease by $40,000. 
D) increase by $20,000.

Mann Corporation Has a Joint Process, Which Produces Three Products