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Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $ 7 8 , 0 0

Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare
mineral. Material and processing costs total $78,000 per ton, one-fourth of which is
allocated to product x15. Eight thousand four hundred units of product x15 are produced
from each ton of clypton. The units can be either sold at the split-off point for $10 each or
processed further at a total cost of $6,000 and then sold for $13 each.
Required:
What is the financial advantage (disadvantage) of further processing product 15?
Should product 15 be processed further or sold at the split-off point?
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