Moore Company produces two products from a joint process. Joint costs are $70,000 for one batch which yields 1,000 litres of germain and 4,000 litres of hastain.

Germain can be sold at the split-off point for $24 per litre or processed further, into geraiten, at a manufacturing cost of $4,100 for the 1,000 litres and sold for $33 per litre.

Hastain can be sold at the split-off point for $30 per litre or processed further, into hasaiten, at a manufacturing cost of $26,000 for the 4,000 litres and sold for $35 per litre.

Required

1. Should germain be sold at the split-off point or processed further? Use numbers to support your conclusion.
2. Should Hastain be sold at the split-off point or processed further? Use numbers to support your conclusion.
3. Calculate Moore Company's profits based on your conclusions in Part 1 and 2.