Chen Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Larco, Marco, and Narco. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available

for one batch of each product.

Instructions
Determine whether each of the three joint products should be sold as is, or processedfurther.

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Sales Value a Allocated Cost to Process Sales Value of Split-Off Point Joint Costs Larco Marco Narco $200,000 300,000 405,000 $40,000 60,000 80,000 Further $110,000 85,000 250,000 Processed Product $300,000 400,000 800,000