Energa S.A. uses a joint process to produce products MMM, NNN, OOO, and PPP. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $200,000. Other relevant data are as follows:

Product	Sales Value At Split-Off	Additional Costs of Processing	Sales Value of Final Product
MMM	$34,000	$38,000	$84,000
NNN	48,000	32,000	76,000
OOO	40,000	35,000	78,000
PPP	28,000	26,000	54,000

Requirements:

1. Evaluate the profitability of processing Product MMM further beyond the split-off point.
2. Determine the incremental profit from processing Product NNN.
3. Allocate joint costs using the constant gross margin percentage method.
4. Prepare a segment income statement for Energa S.A.