24. (Sell or process further) A certain joint process yields two joint products, A and B. The joint cost for May 2001 is $20,000, and the sales value of the output at split-off is $120,000 for Product A and $100,000 for Product B. Management is trying to decide whether to process the products further. If the products are processed beyond split-off, the final sales value will be $180,000 for Product A and $140,000 for Product B. The additional costs of processing are expected to be $40,000 for A and $34,000 for B.

a. Should management process the products further? Show computations.

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