The Kirsten Company uses a joint process to produce products A, B, C, and D. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $65,000. Other relevant data are as follows:
Product
Sales Value
At Split-Off
Additional Costs
of Processing
Sales Value
of Final Product
A
$15,000
$18,000
$ 45,000
B
27,000
15,000
40,000
C
20,000
25,000
30,000
D
13,000
11,000
25,000
$75,000
$69,000
$140,000
Calculate the effect on profits of processing Product A further beyond the split-off point.