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Question 3 (10 points) Sebastian Manufacturing Limited produces three products from a single output. Joint processing costs up to the split off point total $200,000.

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Question 3 (10 points) Sebastian Manufacturing Limited produces three products from a single output. Joint processing costs up to the split off point total $200,000. The company allocates these costs based on the sales values at the split off point which are: Product D $75,000 Product K $150,000 Product M $250,000 Each product can be processed further after the split off point and the following are the costs and sales if they are processed further: Additional Processing costs Sales value after further processing Product D Product K Product M $55,000 30,000 50,000 $140,000 225,000 290,000 Required: Which products should be sold at the split off point and which should be processed further. Explain your answer and show your work

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