Mickey Company manufactures three joint products: X, Y, and Z. The cost of the joint process is $30,000. Information about the three products follows:

	X		Y		Z
Anticipated production	5,600 lbs.		10,000 lbs.		2,500 lbs.
Selling price/lb. at split-off	$2.00		$1.00		$3.00
Additional processing costs/lb. after split-off
(all variable)	$1.50		$1.25		$.75
Selling price/lb. after further processing	$2.50		$3.75		$6.25
Allocated joint costs	$12,000		$10,500		$7,500

Required:

A. Determine whether each product should be sold at split-off or processed further.

Product	Decision
X
Y
Z

B. Determine the firm's income if the firm processed all three products beyond split-off. $