A company produces two products in a joint process, Z8 and W9. The cost of producing Z8 and W9 is $3564 per batch. Additional information relating to the production of products Z8 and W9 is given below:

Z8

W9

Number of units

600

316

Selling price per unit at the split-off point

$8.00

$12.52

Product W9 can be processed further into product W10 at a cost of $1077. 316 units of W9 will produce 197 units of W10, which can then be sold for $26.56 per unit.What is the incremental benefit of processing further?

Select one:

a.$1276

b.$199

c.$4155

d.$1981