Problem:
Lido manufactures A and B from a joint process cost = $70,000. Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $10,000 and then sold for $23. Ten thousand pounds of B can be sold at split-off for $15 per pound or processed further at an additional cost of $23,000 and later sold for $17. Which products should be processed further or not and why? Give the dollar impact to income based on your recommendation.
Note: Please explain comprehensively and give step by step solution.