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In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane.

Joint processing costs up to the split$-$off point total $$42,600$ per year. The company allocates these costs to the joint

products on the basis of their total sales value at the split$-$off point. These sales values are as follows: raw sugar,

$$21,400$; brown sugar, $$21,400$; and white sugar, $$24,300.$

Each product may be sold at the split$-$off point or processed further. Additional processing requires no special facilities.

The additional processing costs and the sales value after further processing for each product $($on an annual basis$)$ are

shown below:

Required:

a$.$ Compute the Incremental profit $($loss$)$ for each product. $($Loss amounts should be indicated by a minus sign.$)$

b$.$ Which product or products should be sold at the split$-$off point? $($You may select more than one answer. Single click

the box with the question mark to produce a check mark for a correct answer and double click the box with the

question mark to empty the box for a wrong answer.$)$

Raw sugar

Brown sugar

White sugar

c$.$ Which product or products should be processed further? $($You may select more than one answer. Single click the

box with the question mark to produce a check mark for a correct answer and double click the box with the

question mark to empty the box for a wrong answer.$)$

Raw sugar

Brown sugar

White sugar