oint Cost Cheyenne, Inc. produces three products from a common input. The joint costs for a typical quarter follow: Direct materials $48,000 Direct labor 58,000 Overhead 63,000 The revenues from each product are as follows Product A $74,000 Product B 79.000 Product C 29,000 Management is considering processing Product A beyond the split-off point, which would increase the sales value of Product A to $116,000. However, process Product A further means that the company must rent some special equipment costing $17,500 per quarter. Additional materials and labor also needed would cost $12,650 per quarter. a. What is the gross profit currently being earned by the three products for one quarter? 0 b. What is the effect on quarterly profits if the company decides to process Product A further? Check