afayette Company manufactures two products out of a joint process: Compod and Ultrasene. The joint costs incurred are $930,000 for a standard production run that generates 138,000 gallons of Compod and 98,000 gallons of Ultrasene. Compod sells for $15.00 per gallon while Ultrasene sells for $14.25 per gallon.

Problem 17-32 Part 4

4. Assuming the same data as in requirement 3, suppose Compod can be processed further into a product called Compodalene, at an additional cost of $3.00 per gallon. Compodalene will be sold for $18.60 per gallon by independent distributors. The distributors commission will be 10 percent of the sales price. Calculate the incremental gain or loss from further processing Compod into Compodalene. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)