Faustina Chemical Corporation manufactures three chemicals (TX14, NJ35, and KS63) from a joint process. The three chemicals 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 chemical process is as follows: Sales value at split-off point Allocated joint costs Sales value after further processing Cost of further processing TX14 N335 KS63 $16,000 $12,000 $5,000 $ 6,000 $ 6,000 $6,000 $20,000 $18,000 $9,000 $5,000 $ 3,000 $2,000 For which product(s) above would it be more profitable for Faustina to sell at the split-off point rather than process further?
