Cariboo Manufacturing Company incurred a joint cost of $600,000 in the production of X and Y in a joint process. Presently, 1,800 of X and 1,400 of Y are being produced each month. Management plans to decrease X's production by 300 units in order to increase the production of Y by 500 units. Additionally, this change will require minor modifications, which will add $20,000 to the joint cost. This cost is entirely attributable to product Y. What is the amount of the joint costs allocable to X and Y before changes to existing production assuming Cariboo allocates their joint costs according to the proportion of X and Y produced? Product XProduct YA.$262,500 $337,500 B.$264,706 $335,294 C.$273,529 $326,471 D.$337,500 $262,500
A. Option A
B. Option B
C. Option C
D. Option D
Answer: D
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