A company manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow: 
Instructions
(a) Which product(s) should be processed further and which should be sold at the split-off point?
(b) Would your decision be different if the company was using the quantity of output to allocate joint costs? Explain.
Definitions:
Vertical Axis
The vertical number line of a graph along which values of the y-variable are measured; also referred to as the y-axis.
Linear Relationship
The relationship between two variables in which the slope is constant and therefore is depicted on a graph by a curve that is a straight line.
Quantity Supplied
The total amount of a good or service that producers are willing and able to sell at a particular price over a specified period.
Quantity Demanded
The overall volume of a good or service that buyers are eager and capable of acquiring at a certain price within a specific period.
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