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| A firm produces two joint products (A and B) from one unit of raw material, which costs $1, Product?A can be sold for $700 and product B can be sold for $500 at the split-off point. Alternatively, both A and/or B can be processed further and sold for $900 and $1,200, respectively. The additional processing costs are $100 for A and $750 for B. Should the firm process products A and B beyond the split-off point? A. Both A and B should be processed further. B. Only B should be processed further. C. Only A should be processed further. D. Neither product should be processed further. |