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Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material...

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Accounting

Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $53,000 per ton, one-fourth of which is allocated to product x15. Seven thousand units of product x15 are produced from each ton of clypton. The units can either be sold at the split-off point for $16 each, or processed further at a total cost of $8,600 and then sold for $21 each.
Required:
What is the financial advantage (disadvantage) of further processing product x15?
Should product x15 be processed further or sold at the split-off point?
\table[[1.,Financial advantage,],[2.,Product x15 should be,]]
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