Products A, B, and C are produced from a single raw material input. The raw material and other production costs up to thesplit-offpoint are $90,000, from which

- Product A, 10,000units

- Product B15,000 units

- Product C10,000 units,can be produced each period.

Part I

At split-off point, selling prices are as follows:

-Product A $2 per unit

-Product B $3 per unit

-Product C $5 per unit.

Further processing costs and unit selling prices are :

• Product A - currently there is no market beyondsplit-off
• Product B $22,500$6.00 per unit
• Product C$25,000$8.00 per unit.

Which products should be sold at split-off and which should be processed further. Use an incremental approach, and show calculations and explain your reasoning: