Company X processes trees. The three products of bark (roofing material), lumber and pulp are produced from the sale tree. Total costs of processing up to the split off point were $800,000. The company has found a market for its scrap which will require little additional processing.

Total sales from the scrap would be 10% of total sales revenue. How much of the $800,000 should be allocated to this product to determine whether it should be further processed and sold?