Walters Company produces 15,000 pounds of product A and 30,000 pounds of product B, each week, by incurring a common joint cost of $400,000. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint product. The accompanying table gives data regarding these two products.

	A	B
selling price per pound at the split off point	12	9
Selling price per pound after further processing	15	11
Total weekly costs to process further	50,000	45,000

1. Create a table and determine which product(s) should be sold at the split-off point and which product(s) should be processed further.

2. Based on your solution, allocate the joint product cost to the products using the net realizable value approach, and determined operating profit by product line and in total.