Sell or process further Winn Mills processes cotton in a joint process that yields two joint products: fabric and yarn. May's joint cost is \(\$ 120,000\), and the sales values at split-off are \(\$ 360,000\) for fabric and \(\$ 300,000\) for yarn. If the products are processed beyond split-off, the final sales value will be \(\$ 540,000\) for fabric and \(\$ 420,000\) for yarn. Additional costs of processing are expected to be \(\$ 120,000\) for fabric and \(\$ 102,000\) for yarn.

a. Should the products be processed further? Show computations.

b. Were any revenues and/or costs irrelevant to the decision? If so, what were they and why were they irrelevant?