Pure Paint Company has been known for years for its two excellent interior wall paints: Nice \& Smooth and Rich \& Thick. The company h.s discovered that by processing Rich \& Thick further it could produce a slightly different paint Nice \& Smooth and Rich \& Thick are produced jointly at a cost of $\$ 160,000$, which is allocated equally between them. If Rich \& Thick were processed further, its selling price would increase by $\$ 2.25$ per unit, and the additional cost per unit would be $\$ 1.80$

1. On the basis of the information given (and disregarding qualitative factors), should the company process Rich \& Thick further? Do you have enough information to make a recommendation? Explain.

2. Interpretive Question: Is the joint cost of $\$ 160,000$ relevant to this discussion? Why or why not?