Hentschke Ltd produces two products, X and Y, at a joint cost of $480 000. The company can sell 620 000 units of product X for $30 per unit, or the units can be processed further at a cost of $160 000 to produce 16 000 units of product A, 20 000 units of product B, and 25 000 units of product C. The unit selling prices for products A, B and C are $45, $30 and $40 respectively. The company can sell 24 000 units of product Y or they can be processed further to produce 10 000 units of product D and 15 000 units of product E. The additional processing to produce products D and E will cost $120 000. The per-unit selling prices are product Y $60, product D $100, and product E $60.

Required

Which of the products should be sold at the split-off point and which should be processed further?