Arya Inc. uses a joint production process to produce two products (regular and luxury). The Corporation has $200,000 of joint processing costs this year and is considering whether to process its two products beyond the split-off point. Information about the two products follow:

Regular Luxury

Units produced

26,000 17,000

Total variable cost of processing further

$78,000 $119,000

Selling price per unit at split off point

20 55

Selling price per unit after further processing

26 62

Required:

Should the two products be processed further? Show all calculations