Knight, Inc. produces three products using a joint process which requires $115,000 in joint costs. The products A, B and C can be sold at split-off or processed further and then sold. The production level for each product is 8,000 units. The following unit information is also available: 
Required:
a. Which products should be processed further?
b. Processing each product further will have what effect on profits?
Definitions:
Compromise Decision
A resolution or agreement reached by each side making concessions, especially in a legal or business context, to settle a dispute or disagreement.
Mediation
A type of intensive negotiation in which disputing parties select a neutral party to help facilitate communication and suggest ways for the parties to solve their dispute.
Alternative Dispute Resolution
A range of processes, such as mediation or arbitration, designed to resolve disputes without formal litigation.
Arbitrators
Individuals appointed to settle disputes in an arbitration process, making decisions that are usually binding for all parties involved.
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