Problem

Two products IF and RI, emerge from the joint process. Product IF has been allocated $15,300 of the total join costs of $36,000. A total of 2,200 units of product IF are produced fro the joint process. Product IF can be sold at the split-off point for $10.00 per unit, or it can be processed further for an additional total cost of $10,200 and then sold for $12.00 per unit. If product IF is processed further and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point?

1) $21,900 less profit 2) $5,800 less profit 3) $16,200 more profit 4) $9,500 more profit?