Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total of $350,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:

	Recliner	Sofa	Love Seat
Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$1,400	$1,800	$1,500
Variable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$800	$1,200	$1,000
Upholstery shop time required to produce one unit . . . . .	8 hours	10 hours	5 hours

Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:

Product	Selling Price	Quarterly Output
A ..........	$16 per pound	15,000 pounds
B ..........	$8 per pound	20,000 pounds
C ..........	$25 per gallon	4,000 gallons

Which product or products should be sold at the split-off point and which product or products should be processed further? Show computations.