Phoenix Corporation has a joint process that produces three products: X,Y and Z.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $100,000.Other data follows: Processing Product Y beyond the split-off point will cause profits to ________.
A)decrease $1,000
B)decrease $26,000
C)increase $1,000
D)increase $26,000

Question

Phoenix Corporation has a joint process that produces three products: X,Y and Z.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $100,000.Other data follows:  Processing Product Y beyond the split-off point will cause profits to ________.
A)decrease $1,000 
B)decrease $26,000 
C)increase $1,000 
D)increase $26,000

Quizplus · Accepted Answer

The Answer of Phoenix Corporation has a joint process that produces three products: X,Y and Z.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $100,000.Other data follows:  Processing Product Y beyond the split-off point will cause profits to ________.
A)decrease $1,000 
B)decrease $26,000 
C)increase $1,000 
D)increase $26,000

Phoenix Corporation Has a Joint Process That Produces Three Products