ChemCo. manufactures three chemicals (TX1, NJ3, and KS6) from a joint process. These three chemicals 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 chemical process are as follows: E M @ Sales value at split-off point $16,000 $12,000 $5,000 Allocated joint costs $6,000 $6,000 $6,000 Sales value after further processing $20,000 $18,000 $9,000 Cost of further processing $5,000 $3,000 $2,000