Oates Tannery manufactures three main products from a common input in a joint processing operation. Joint processing costs up to the split-off point are as follows: Direct materials 150,000 Direct labour 180,000 Supervisor's salary 150,000 Security 50,000 Custodian salaries 40,000 Utilities 30,000 The company allocates these costs to the joint products on-the-basis of their total sales at the split-off point. Each of the products may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product, on an annual basis, are: Further Sales Value Sales Value Processing After Further Product at Split-off Costs Processing X $300,000 $ 150,000 S460,000 Y $200,000 $ 190,000 $360,000 Z $100,000 $ 170,000 $320,000 The "Further Processing Costs" consist of variable and avoidable fixed costs. Required: a) Which product or products should be sold at the spilt-off point, and which product or products should be processed further? Show computations b) F18 is a minor by-product of the above process and is not included in the above calculations. It is sold after minor further processing. The following information has been provided: Sales $12,000 Variable costs 2,000 Traceable fixed costs 6,000 Common fixed costs 10.000 Operating loss (56.000 What would happen to GH Ltd, 's operating income if F18 was scrapped at no cost at the split-off point rather than processed further? Should GH Ltd. process F18 further