3.) Sweet Mandarines processes different types of mandarines. The most common raw

material that it processes results in three joint products: Larco, Marco, and Narco. Each

of these products can be sold as is, or each can be processed further and sold for a higher

price. The company incurs joint costs of $180,000 to process one batch of the raw material

that produces the three joint products. The following cost and sales information is available

for one batch of each product.

	Sales Value at Split-Off point	Allocated Joint Costs	Cost to Process Further	Sales Value of Processed Product
Larco	$200,000	$40,000	$110,000	$330,000
Marco	300,000	60,000	75,000	400,000
Narco	400,000	80,000	250,000	600,000

Determine whether each of the three joint products should be sold as is, or processed further.