Chesti Company produces products Alfa, Bata, and Thada from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production cots of $184,000 per year are allocated to the products based on the relative number of units produced. Data for Wyatt's operations for the current year are as follows:

		Units Produced		Allocated Joint Production Costs		Sales Value at Split-off
Product
Alfa		16,000		$64,000		$152,000
Bata		20,000		$80,000		142,000
Thata		10,000		$40,000		96,000
		46,000		$184,000

Product Alfa can be processed beyond the split-off point for an additional cost of $52,000 and can then be sold for $210,000. Product Bata can be processed beyond the split-off point for an additional cost of $76,000 and can then be sold for $234,000. Product Thada can be processed beyond the split-off point for an additional cost of $24,000 and can then be sold for $114,000.

REQUIRED:

1. Calculate the impact on operating income of processing each product further. (9 points)
2. Which product(s) should be processed beyond the split-off point? (1 point)
3. Identify one non-financial consideration relative to this decision. (1 point)