Answer:
Products R and J should be processed beyond split-off point
Explanation:
In determining whether or not a product should be further processed,the incremental benefit of further processing should be determined as follows:
incremental benefit/(cost)=sales value after split-additional cost of further processing-sales value at split-off point:
Product R =$105,000-$26,000-$76,000=$3,000
Product J=$117,000-$38,000-$71,000=$8,000
Product C=$57,000-$12,000-$48,000=-$3000
Product R and J should be processed further as they give profit of $3,000 and $8,000 respectively.
Product C should not be further processed as loss of $3,000 would result from that.
