Information About Three Joint Products Follows The Cost of the Joint Process Is $140,000

Information about three joint products follows:
$\begin{array}{lccc}&\underline{A}&\underline{B} &\underline{C}\\\text { Anticipated production } & 5,000 \mathrm{~kg} & 1,000 \mathrm{~kg} & 2,000 \mathrm{~kg} \\\begin{array}{l}\text { Selling price/kg at split-off } \\\text { Additional processing costs/ } \mathrm{kg}\end{array} & \$ 10 & \$ 30 & \$ 16 \\\begin{array}{l}\text { after split-off (all variable) }\end{array}& \$ 6 & \$ 12 & \$ 24 \\\begin{array}{l}\text { Selling price/kg after further } \\\text { processing }\end{array} &\$20&\$40&\$50 \\\end{array}$ The cost of the joint process is $140,000.
-Refer to the figure.Assuming all of the sell-now or process-further decisions were correctly made,what will be the firm's income?

A) $596,000
B) $610,000
C) $654,000
D) $736,000

Correct Answer:

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