Exercise $12-6($Algo$)$ Sell or Process Further $[$LO$2]$

In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split$-$off point total $$42,700$ per year. The company allocates these costs to the joint products on the basis of their total sales value at the split$-$off point. These sales values are as follows: raw sugar, $$20,700$; brown sugar, $$20,700$; and white sugar, $$22,300.$

Each product may be sold at the split$-$off point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product $($on an annual basis$)$ are shown below:

ProductAdditional Processing CostsSales

ValueRaw sugar$$22,500$$$42,600$Brown sugar$$14,900$$$37,400$White sugar$$5,200$$$44,400$

Required:

a$)$ Compute the Incremental profit $($loss$)$ for each product.

b$)$ Which product or products should be sold at the split$-$off point?

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.

c$)$ Which product or products should be processed further?

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.

Please explain your process of finding the answers. I am not the best with math and I am trying my best to understand for my upcoming final exam.