Products A$,$ B$,$ and C are produced from a single raw material input. The raw material costs

are $$90,000,$ from which $5,000$ units of A$,10,000$ units of B$,$ and $15,000$ units of C can be

produced each period. Product A can be sold at the split$-$off point for $$2$ per unit, or it can be

processed further at a cost of $$12,500$ and then sold for $$5$ per unit. What is the correct

course of action regarding Product A$?$

A$)$ It should be sold at the split$-$off point, since further processing would result in a loss

of $$0\mathrm{.}50$ per unit.

B$)$ It should be processed further, since this will increase profits by $$2,500$ each period.

C$)$ It should be sold at the split$-$off point, since further processing will result in a loss of

$$2,500$ each period.

D$)$ It should be processed further, since this will increase profits by $$12,500$ each period.