Faustina Chemical Corporation manufactures three chemicals (TX14, NJ35, and KS63) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this chemical process is as follows: TX14NJ35KS63Sales value at split-off point$16,000$12,000$5,000Allocated joint costs$6,000$6,000$6,000Sales value after further processing$20,000$18,000$9,000Cost of further processing$5,000$3,000$2,000For which product(s) above would it be more profitable for Faustina to sell at the split-off point rather than process further?
A. TX14 and KS63 only
B. TX14 only
C. KS63 only
D. NJ35 and KS63 only
Answer: B
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