Question 3 APEX Ltd manufactures a range of vinyl gloves for different customers with most of its output going to supermarkets. Each product is made from a joint process on one site. The costs of the joint process in the past year were as follows: Materials = 111,000 Labour and production overhead = 60,500 The quantities and sales produced last year were as shown below: Product Premium Brand Gloves Standard Own Label Low Life Gloves Units Produced Sales Value () Further Processing Costs () 15,000 41,000 15,000 280,000 402,000 93,000 6,000 8,000 The firm is considering whether to sell their products to other producers at the split-off point for 85p per unit for Premium Brand, 1.20 per unit for Standard Own Label and 1.10 per unit for Low Life Gloves. Required: a) Explain what is meant by the term 'split-off point' in a joint process. [2 marks] b) Calculate the net profit earned for each product using net realisable value (NRV) method for joint cost allocation. [9 marks] c) Determine whether it would be more profitable for the company to sell its products before or after further processing. [9 marks]