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Autry Company manufactures veterinary products. One joint process involves refining a chemical (dactylyte) into two chemicals - dac and tyl. One batch of 5,000 gallons

Autry Company manufactures veterinary products. One joint process involves refining a chemical (dactylyte) into two chemicals - dac and tyl. One batch of 5,000 gallons of dactylyte can be converted to 2,000 gallons of dac and 3,000 gallons of tyl at a total joint processing cost of $12,000. At the split-off point, dac can be sold for $3 per gallon and tyl can be sold for $4 per gallon. Autry has just learned of a new process to convert dac into prodac. The new process costs $4,000 and yields 1,700 gallons of prodac for every 2,000 gallons of dac. Prodac sells for $5 per gallon. Refer to Figure 13-6. Should Autry process dac further?

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