Sell at Split$-$Off or Process Further

Bozo Inc. manufactures two products from a joint production process. The joint process costs $$110,000$ and yields $6,000$ pounds of LTE compound

and $14,000$ pounds of HS compound. LTE can be sold at split$-$off for $$55$ per pound. HS can be sold at split$-$off for $$11$ per pound. A buyer of HS

asked Bozo to process HS further into CS compound. If HS were processed further, it would cost $$37,400$ to turn $14,000$ pounds of HS into $4,000$

pounds of CS$.$ The CS would sell for $$50$ per pound.

Required:

What is the contribution to income from selling the $14,000$ pounds of HS at split$-$off?

$

Conceptual Connection: What is the contribution to income from processing the $14,000$ pounds of HS into $4,000$ pounds of CS$?$

$

Should Bozo continue to sell the HS at split$-$off or process it further into CS$?$