A process produces two products A and B in equal physical quantities. A and B are sold at split off point for $5 per kg and $8 per kg respectively. There are no further costs after the split off point. If joint costs are apportioned on a relative sales value basis, which of the following statements is true?
A.
Product A will have the higher return on sales ratio(operating margin)
B.
The cost per kg will be the same for both products
C.
The cost per kg of product A will be higher than that of product B
D.
Both products will have the same return on sales ratio(operating margin)