Question: Booths Industry produces two products from a common input. Data relating to the two products are given below: Product A Product B Sales value at


Booths Industry produces two products from a common input. Data relating to the two products are given below: Product A Product B Sales value at split-off point... $60,000 $120,000 Allocated joint product costs.. 45,000 90,000 Sales value after further processing......... 90,000 200,000 Cost of further processing. 20,000 85,000 Tao At present practice Booths Industry sold each joint product after further processing. If the joint product will be sold at split-off point, how much would be the difference in the company's overall profit? Select one: O a. $110,000 difference less than at present practice. O b. $10,000 difference less than at present practice. O c. $5,000 difference higher than at present practice. O d. $5,000 difference less than at present practice. By what criterial would management determine whether to further process the joint products? Select one: O a. If sales value of joint product at split-off point is lower that sales value after further process. O b. If the joint product net realizable value is lower than sales value at split-off point O c. If sales value of joint product at split-off point is higher is than sales value after further process. O d. If the incremental revenue of joint product is higher that the joint product incremental cost. Booths Industry produces two products from a common input. Data relating to the two products are given below: Product A Product B Sales value at split-off point...... $60,000 $120,000 Allocated joint product costs.............. 45,000 90,000 Sales value after further processing......... 90,000 200,000 Cost of further processing............... 20,000 85,000 Tao At present practice Booths Industry sold each joint product after further processing. If the joint product will be sold at split-off point, how much would be the difference in the company's overall profit? Select one: O a. $110,000 difference less than at present practice. O b. $10,000 difference less than at present practice. c. $5,000 difference higher than at present practice. O d. $5,000 difference less than at present practice
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