Kelman Inc. manufactures three chemicals from a joint production process. Joint costs are $700,000 and yield 20,000 litres of Chemical XE, 10,000 litres of chemical ZE and 8,000 litres of chemical XS. Chemical XE can be sold at the split off point for $20 per liter, Chemical ZE can be sold at the split off point for $30 per litre, and Chemical XS can be sold at the split off point for $40 per litre A buyer of chemical ZE asked the company to process Chemical ZE further into Chemical ZX. If chemical ZE were processed further, it would cost $155,000 to turn 10,000 litres of Chemical ZE into 5,000 litres of chemical ZX. The Chemical ZX would sell for $80 per litre. Question 7 (3 points) What is the net change in operating income if the company was to process further? Enter your answer as a positive number. Question 8 (1 point) Should the company process chemical ZE further into chemical ZX? Yes No