Item$33$

$0\mathrm{.}7$points

Time Remaining $2$ hours $17$ minutes $2$ seconds

$02$:$17$:$02$

Item $33$

Time Remaining $2$ hours $17$ minutes $2$ seconds

$02$:$17$:$02$

Assume a company has three products$$A$,$ B$,$ and C$$that emerge from a joint process. The joint processing costs that are incurred up to the split$-$off point equal $$1,265,000.$ The selling prices and outputs for each product at the split$-$off point are as follows:

ProductSelling PriceOutputA$ $33$per pound$14,000$poundsB$ $29$per pound$18,000$poundsC$ $24$per pound$19,000$pounds

Each product can be processed further beyond the split$-$off point. The additional processing costs for each product and their respective selling prices after further processing are as follows:

ProductAdditional Processing CostsSelling PriceA$ $65,000$$ $37$per poundB$ $72,000$$ $34$per poundC$ $88,000$$ $30$per pound

The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage $($disadvantage$)$ of continuing to operate the entire joint manufacturing process?

Multiple Choice

$$210,000$

$$219,000$

$$207,000$

$$223,000$