Answer:
Incremental income from further processing   $534,900  
The company should process further
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>
<em>Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .  </em>
                                                                                                  $
Revenue after split-off point 
(104×5400) + (53× 11,100)                                                   1,149,900
Revenue at the slit of  point                  
(25,000× $15)                                                                    <u>   (375,000
)</u>
Additional income from further processing                        774,900
Further processing cost                                                     <u> (240,000)</u>
Incremental income from further processing                    <u> 534,900</u>  
Incremental income from further processing                   $534,900  
The company should process further