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 $80,000 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, $40,000; brown sugar, $40,000; and white sugar, $42,000.

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:

Additional Product Processing Costs Sales Value Raw Sugar $42,000 $80,000 Brown Sugar $28,000 $70,000 White Sugar $12,000 $82,000 Required Which products or products should be sold at the split-off point, and which product or products should be processed further? Show computations