Solex Company manufactures three products from a common input in a joint processing operation. Joint

processing costs up to the split-off point total $100,000 per year. The company allocates these costs to

the joint products on the basis of their total sales value at the split-off point. These sales values are as

follows: product X, $50,000; product Y, $90,000; and product Z, $60,000.

Each product may be sold at the split-off point or processed further. Additional processing requires no

special facilities. The additional processing costs and the sales value after further processing for each

product (on an annual basis) are shown below:

Required:

Which product or products should be sold at the split-off point, and which product or products should be

processed further? Show computations.