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ABC Company processes unprocessed milk up to the split-off point where two products, condensed milk and skim milk result. The following information was collected for

ABC Company processes unprocessed milk up to the split-off point where two products, condensed milk and skim milk result. The following information was collected for the month of October: Direct Materials processed: 102,500 gallons (after shrinkage) Production: Condensed milk 45,000 gallons Skim milk 57,500 gallons Sales: Condensed milk $3.50 per gallon Skim milk $3.00 per gallon The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 102,500 gallons of saleable product was $189.480. There were no inventory balances of either product. Condensed milk may be processed further to yield 44,500 gallons (the remainder is shrinkage) of a medicinal milk product. Flex, for an additional processing cost of $6 per usable gallon. Flex can be sold for $22 per gallon. Skim milk can be processed further to yield 56,200 gallons of skim ice cream, for an additional processing cost per usable gallon of $6. The product can be sold for $14 per gallon. There are no beginning and ending inventory balances How much (if any) extra income would ABC Company earn if it produced and sold all of the Flex from the condensed milk? Allocate joint processing costs based upon relative sales value on the split-off. Extra income means income in excess of what ABC Company would have earned from selling condensed milk Instructions: Round your answer to the nearest dollar, and do not include cents, commas. % or 5. For example: if the answer is 10000 simply write 10000 land NOT $10.000 $10,000.00, 10,000.00, $10000.00 or 10000.00)

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