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Jaguar Co. produces product X and Y from a joint production process and can be sold for $90,000 and $30,000, respectively. Product Y may be

Jaguar Co. produces product X and Y from a joint production process and can be sold for $90,000 and $30,000, respectively. Product Y may be sold at the split-off point or be processed further. Joint production costs of $100,000 are allocated to the product based on sales. Product Y can be processed beyond the split-off point for an additional cost of $ 40,000 and can then be sold as product YA for $80,000. If product Y is processed further and sold as product YA, what would be the effect on the overall profit of the company compared with the sale in its unprocessed form directly after the the split-off point?

$35,000 less profit

$35,000 more profit

$10,000 more profit

$10,000 less profit

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