SELL OR PROCESS FURTHER, BASIC ANALYSIS

Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for the current year are as follows:

UnitsAllocated JointSales ValueProductProducedProduction Costat Split-offR8,000$32,000$76,000J10,00040,00071,000C5,00020,00048,000

Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $48,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $14,000 and can then be sold for $57,000.