2. Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for the current year are as follows: Units Allocated Joint Sales Value Produced Production Cost at Split-off Product R... 8,000 $32,000 $76,000 Product J.... 10,000 $40,000 $71,000 Product C... 5,000 $20,000 $48,000 Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000. Required: Which products should be processed beyond the split-off point? (Show your calculation process) Answer: Product R Product J Product C Sales value after further processing S $ Sales value at split-off Incremental sales value from processing $ $ S Incremental processing costs $ Net gain (loss) from further processing $ Therefore, products and should be processed beyond the split-off point. Product should be sold at split-off