Exercise $13-13($Algo$)$ Sell or Process Further Decision $[$LO$13-7]$

Wexpro, Incorporated, produces several products from processing $1$ ton of clypton, a rare mineral. Material and

processing costs total $$62,000$ per ton, one$-$fourth of which is allocated to product X$15.$ Elght thousand three hundred

units of product X $15$ are produced from each ton of clypton. The units can elther be sold at the split$-$off point for $$16$

each, or processed further at a total cost of $$9,800$ and then sold for $$19$ each.

Required:

What is the financial advantage $($disadvantage$)$ of further processing product X $15?$

$2$ Should product $x15$ be processed further or sold at the split$-$off point?