Susan Corporation manufactures three products from a joint process. The three products are in industrial grade form at the split-off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this process is as follows:

Product 1

Sales Price at split-off point

$16

Allocated joint costs

$6,000

Sales Price after further processing $20

Cost of further processing

$6.660

Product Quantity

1,000 lb.

Product 2

$12

56.000

$18

$2.220

1000 16.

Product 3

$5

$6,000

$14

$2.650

1000 Ib

Q) What would be the additional amount of profit that Susan Corp. would gain from further processing the products) that is/are more profitable to process further rather than be sold at the split-off point?

A)$