Clinton, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $69,000 per ton, one-fourth of which is allocated to product B12. Seven thousand five hundred units of product B12 are produced from each ton of clypton. The units can either be sold at the split-off point for $12 each, or processed further at a total cost of $9,200 and then sold for $18 each.

1a. What is the financial advantage (disadvantage) of further processing product B12?

Advantage or disadvantage of ____________

2a. Should product B12 be processed further or sold at the split-off point?

should be processed further or sold at the split-off point