A company produces two chemicals in a joint process Chemical A-14801

A company produces two chemicals in a joint process. Chemical A can be sold at split off while chemical B currently cost Rs. 2 per gallon for disposal. If chemical B is further processed, it would cost Rs. 5 per gallon. At what sales price would the company be in different between disposing of chemical B at split off and further processing the chemical?

This multiple choice question (MCQ) is related to the book/course vu mgt402 Cost & Management Accounting. It can also be found in vu mgt402 Final Term - Quiz No.10.