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:

Product Additional Processing Costs Sales

Value

Raw sugar $ $24,000$ $ $43,500$

Brown sugar $ $12,600$ $ $35,000$

White sugar $ $6,000$ $ $42,900$

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.$)$

check all that apply $1$

Raw sugarunanswered

Brown sugarunanswered

White sugarunanswered

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.$)$

check all that apply $2$

Raw sugarunanswered

Brown sugarunanswered

White sugar