One of the products manufactured by Alpha Corporation in its joint processing operation is 15,000 gallons of Liquid. Alpha can sell the Liquid at the split-off point or process it further into Super-Liquid. Additional information is presented below:

	Per unit selling price at split off	Additional processing costs	Per unit selling price after further processing
Liquid	$7 per gallon	$40,000	$10 per gallon

What is the financial advantage (disadvantage) of processing Liquid into Super Liquid rather than selling it at the split off point?

$ 45,000

$110,000

$ 5,000

( $40,000)

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