Cellestial Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000. If Processed Further Sales Value Additional Product Units Produced at Split-Off Costs Sales Value A1 3,000 $10,000 $2,500 $15,000 B2 5,000 30,000 3,000 35,000 C3 4,000 20,000 4,000 25,000 D4 6,000 40,000 6,000 45,000 If Product B2 is processed further, profits will

$2,000

Explanation:

The computation of the profit in case of Product B processed further is shown below:

Sales value if processed further$35,000  

Less: Sales value at Split-Off$30,000  

Incremental revenue                 $5,000  

Less: Additional costs                 $3,000  

Incremental income                 $2,000  

First we have to find out the incremental revenue after that deduct the additional cost so that the incremental income or we can say profit could arrive

the answer is d

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