Kelp Company produces three joint products from seaweed. At the split$-$off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split$-$off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows:

Required:

a$-1.$ Compute the incremental benefit $($cost$)$ of further processing to these products.

a$-2.$ Which products should Kelp process beyond the split$-$off point?

b$.$ What is the selling price per pound of Sea Paste at the split$-$off point at which the company is indifferent?

Complete this question by entering your answers in the tabs below.

Req A$1$

ReqA$2$

Req B

Compute the incremental benefit $($cost$)$ of further processing to these products.

Note: Negative amounts should be shown with a minus sign.