1. Autry Company manufactures veterinary products. One joint process involves refining a chemical (dactylyte) into two chemicals- dac and tyl. One batch of 5,000 gallons of dactlytyte can be converted to 2,000 gallons of dac and 3,000 gallons of tyl at a total joint processing cost of $12,000. At the split off point, dac can be sold for $3 per gallon and tyl at a joint processing cost of $12,000. At the split off point, dac can be sold for $3 per gallon and tyl can be sold for $4 per gallon. Autry has just learned of a new process to convert dac and prodac. The new process costs $4,000 and yields 1,700 gallons of prodac for every 2,000 gallons of dac. Prodac sells for $5 per gallon. Should Autry process further dac further and by how much?