Spot on Soda Inc. processes liquid direct ingredients up to the splitoff point, where two products, Cherry Juice and Berry Juice, are obtained. The following information was collected for the month of August:

Direct ingredients processed: 12,000 litres (with 20 percent shrinkage)

Production:	Cherry Juice	7000 litres
	Berry Juice	2600 litres
Unit sales value at splitoff:	Cherry Juice	$1.50 per litre
	Berry Juice	$1.00 per litre

Cost of purchasing 12,000 litres of direct ingredients and processing it up to the splitoff point to yield a total of 9,600 litres of good products was $4,000. There were no inventory balances of Cherry or Berry juice.

Cherry Juice may be processed further to yield 6,400 litres of Cherry Soda for an additional processing cost of $1,500. Cherry Soda is sold for $2.50 per litre. There was no beginning inventory and ending inventory was 1,250 litres.

Berry Juice may be processed further to yield 1,950 litres of Berry Soda for an additional processing cost of $2,750. Berry Soda is sold for $3.00 per litre. There was no beginning inventory and ending inventory was 25 litres.

What is Cherry Soda's estimated net realizable value?

		$7,294
		$10,500
		$11,294
		$14,500