Faustina Chemical Corporation manufactures three chemicals (TX14, NJ35, and KS63) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this chemical process is as follows:

	TX14	NJ35	KS63
Sales value at split-off point	$ 16,000	$ 12,000	$ 5,000
Allocated joint costs	$ 6,000	$ 6,000	$ 6,000
Sales value after further processing	$ 20,000	$ 18,000	$ 9,000
Cost of further processing	$ 5,000	$ 3,000	$ 2,000

For which product(s) above would it be more profitable for Faustina to sell at the split-off point rather than process further?

Multiple Choice

TX14 and KS63 only

TX14 only

KS63 only

NJ35 and KS63 only