Presley, Inc., produces two products, ups and downs, in a single process. The joint costs of this process were $42,000, and 39,000 units of ups and 21,000 units of downs were produced. Separable processing costs beyond the split-off point were as follows: ups, $18,000; downs, $5,780. Ups sell for $2.00 per unit; downs sell for $2.18 per unit.

Required:
1. Allocate the $42,000 joint costs using the estimated net realizable value method.
2. Suppose that ups could be sold at the split-off point for $1.80 per unit. Should Presley sell ups at split-off or process them further? Show supporting computations.