Gazzola Ltd produces four joint products — A, B, C and D — at a total cost of $325000. The company can sell the products immediately at the split-off point for $100000, $40000, $90000 and $85000 respectively. Alternatively, the products also can be processed further and sold as shown below:

Product		Further processing costs		Sales (excluding GST)
A B C D		$94000 200000 215 000 50 000		$200000 240 000 290000 140 000

Assume that all costs after the split-off point can be avoided for any product that is not processed beyond the split-off point.

Required

Which products should be processed further and which should be sold at the split-off point? Show calculations to justify the decisions.