Exercise $12-6$ 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 $$74,000$ per year. The company allocates these costs to the joint products on the basis of their total sales value at the split$-$off point. These sales values are as follows: raw sugar, $$37,000$; brown sugar, $$40,750$; and white sugar, $$48,000.$

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:

$\backslash$table$[[$Product$,$Additional Processing,Sales$],[$Raw sugar,Costs,Value$],[$Brown sugar,$$39,235,$$$74,000$