Physical measure allocation and sell or process further

Oregon Forests uses a joint process to manufacture two grades of wood: A and B$.$ During October, the company incurred $$48,600,000$ of joint production cost in producing $81,000,000$ board feet of Grade A and $27,000,000$ board feet of Grade B lumber. The company allocates joint cost on the basis of board feet of lumber produced. The company can sell Grade A lumber at the split$-$off point for $$0\mathrm{.}70$ per board foot and Grade B lumber at the split$-$off point for $$0\mathrm{.}50$ per board foot. Alternatively, Grade A lumber can be further processed at a cost of $$0\mathrm{.}75$ per board foot and then sold for $$1\mathrm{.}50$ per board foot. No opportunity exists for processing Grade B lumber after split$-$off.

a$.$ How much joint cost should be allocated to Grade A and to Grade B lumber using the physical units method?

Grade $A$$

Grade B $

b$\mathrm{.}1.$ If Grade A lumber is processed further and then sold, what is the incremental effect on Oregon Forests' net income?

Processing further will result in ar

$2.$ Should the additional processing be performed?