The following information is for a company that produces four types of microprocessors using the same production process. The common costs of these products, up to the split-off point, are $550,000. Common costs are allocated based on the quantity of output. The following information includes additional processing costs, the selling price of each product at the split-off point, and the selling price of each product after further processing:

Microprocessor

Number of

Units Produced

Selling Price at

Split-Off Point

Selling Price after

Further Processing

Additional Costs for

Further Processing

1

3,000

$10.00

$15.00

$14,800

2

4,000

9.50

12.25

8,500

3

2,500

11.00

15.70

12,000

4

500

7.75

10.25

1,250