QUESTION 3 The Herman Company uses a joint process to produce products W, X, Y and Z. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $32,500. Other relevant data are as follows: Sales Value Additional Costs Product Sales Value at Split-Off of Processing of Final Product w $7,500 $9,000 $ 22,500 13,500 7,500 20,000 Y 10,000 12,500 15,000 Z 6.500 5.500 12.500 $37.500 $34,500 $70,000 Calculate the effect on profits of processing Product W further beyond the split-off point