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Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be

Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for the current year are as follows:

Units

Allocated Joint

Sales Value

Product

Produced

Production Cost

At Split-off

R

8,000

$32,000

$76,000

J

10,000

40,000

71,000

C

5,000

20,000

48,000

Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000.

Required:

Which products should be processed beyond the split-off point?

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