Blank co. manufactures three products from a joint process. The three products are in industrial grade form at the split- off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this process is as follows: Product 1 Product 2 $12 $6,000 $18 $2,560 1,000 lb. Product 3 Sales Price at split-off point Allocated joint costs Sales Price after further processing $20 Cost of further processing Product Quantity $16 $6,000 $5 $6,000 $14 $1,510 $6,460 1,000 lb. 1,000 lb. Q. What would be the additional amount of profit that Blank co. would gain from further processing the product(s) that is/are more profitable to process further rather than be sold at the split-off point?

A. $

Product 1 Sales Price at split off point $16 Allocated joint costs $6,000 Sales Price after further processing $20 Cost of further processing $6,460 Product Quantity 1,000 lb. Product 2 $12 $6,000 $18 $2,560 1,000 lb. Product 3 $5 $6,000 $14 $1,510 1,000 lb