Land O'Lakes' is considering two additional products, using some of the block cheddar cheese: extra

sharp cheddar and shredded cheddar.

A batch of each product uses one block of the cheddar cheese. The extra sharp cheddar is aged for a

longer time period and the shredded cheddar would require Land O$\text{'}$ Lakes to shred the blocks of

cheddar cheese. Cost data related to each new product is provided below.

Shredded Cheddar EXTRA SHARP

Cheddar

Sales Value at split$-$off $$5\mathrm{.}00$ $$5\mathrm{.}00$

Sales Value after further processing $$5\mathrm{.}25$ $$6\mathrm{.}50$

Allocated joint costs $$0\mathrm{.}50$ $$0\mathrm{.}50$

Cost of further processing $($per unit$)$ $$0\mathrm{.}50$ $$1\mathrm{.}25$

$1)$ Incremental revenue from further processing

$2)$ Incremental cost of further processing

$3)$ Financial impact of further processing

$4)$ Should Land O'Lakes Sell $"$as is$"$ or process further?