Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,000 gallons of Chem-X with a cost of $90,000. Additional information regarding a batch follows.

							If Processed Further
Product	Units Produced			Unit Sales Value at Split-off			Additional Costs (Per Unit)			Sales Value (Per Unit)
M-10		22,000		$	5.00		$	2.00		$	6.00
M-20		14,000		$	10.00		$	4.00		$	16.00
B-60		5,000		$	0.50			NA			NA

Oak View Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs.

Required:

Under these assumptions, the following product(s) should be processed further and then sold:

Multiple Choice

• M-10

• M-20

• Both M-10 and M-20

• Neither M-10 nor M-20

• Cannot tell from the information given.