LILI huneWUIR 1 Saved Exercise 12-13 Sell or Process Further Decision (LO12-7) 0/166 points awarded Wexpro, Inc. produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $71,000 per ton, one-fourth of which is allocated to product X15. Six thousand five hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $17 each, or processed further at a total cost of $8.800 and then sold for $22 each. 00:22:52 Required: 1 What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? Scored eBook Product X15 should Print Reference Explanation The financial advantage of further processing X15 is computed as follows: $143,000 Sales value after further processing 16,500 units x $22 per unit) Sales value at the split-off point 16,500 units $17 per unit) Incremental revenue from further processing Cost of further processing Financial advantage of further processing 110,500 32,500 8,800 $ 23,700 The $71,000 cost incurred up to the split-off point is not relevant in a sell or process further analysis. Yes, the company should process product X15 beyond the split-off point