CK Corporation 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:

QUESTION: What would be the additional amount of profit that CK Corp. would gain from further processing the product(s) that is/are more profitable to process further than be sold at the split-off point?

Product 1 Product 2 Sales Price at split-off point $16 $12 Allocated joint costs $6,000 $6,000 Sales Price after further processing $20 $18 Cost of further processing $5,630 $3,190 Product Quantity 1,000 lb. 1,000 lb. Product 3 $5 $6,000 $14 $1,340 1,000 lb