QUIK Manufacturing Company Ltd produces two products from a joint process. Information about the two joint products is as follows:

Information Product A Product B

Budgeted production (in kg) 2000 4000

Selling price per kg at split-off $ 10 $ 20

Additional processing costs per

kg after split-off (all variable) $ 15 $ 30

Selling price per kg after further

processing $40 $50

The cost of the joint process is $ 90 000.

Required: a) Which of QUIK company's joint products should be sold at split-off point? Please support your answer with the necessary calculations. (4 marks)

b) Which of QUIK company's joint products should be processed further? Support your answer with the necessary calculations. (4 marks)

c) The company currently sells both products at the split-off point. If the company makes decisions that maximises profits, by how much would the company's profits increase by? (3 marks)

PLEASE SHOW ALL OF YOUR WORKINGS