Bugs Bunny grows carrots and processes them into two different types of carrot products: baby carrots and carrot cake. A bag of baby carrots can be sold at the split- off point for $10 per bag, or it can be processed further into a carrot cake for an additional cost of $7 per unit. Carrot cake can be sold for $24 per unit. The joint production costs are $6. Should the baby carrots be processed further versus selling at the split-off point? Yes, a bag of baby carrots should be processed further because the incremental profit would be $7. No, a bag of baby carrots should be sold at split-off point because the incremental loss would be $7. Yes, a bag of baby carrots should be processed further because the incremental profit would be $1. No, a bag of baby carrots should be sold at split-off point because the incremental loss would be $1