SELL OR PROCESS FUR'I1-IER, BASIC ANALYSIS Shenista Inc. produces four products {Alpha Beta, Gamma, and Delta) from a common input. The joint costs for a typical quarter follow: Direct materials $95,000 Direct labour 43,000 Overhead 85,000 The revenues from each product are as follows: Alpha, $100,000; Beta, $93,000; Gamma, $30,000; and Delta, $40,000. Management is considering processing Delta beyond the split-off point, Which would increase the sales value of Delta to $75,000. However, to process Delta further means that the company must rent some special equipment that costs $15,400 per quarter. Additional materials and labour also needed, will cost $8,500 per quarter. Required: What is the operating prot earned by the four ptoducts for one quarter? 5 Marks Should the division process Delta further or sell it at split-off? What is the effect of the decision on quarterly operating profit? 5 Marks