Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $27,000 per ton, one-fourth of which is allocated to product X15. 5,000 units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $12.00 each, or processed further at a total cost of $11,000 and then sold for $16.00 each.

Required:

Should product X15 be processed further or sold at the split-off point?

Should be processed further.

Should be sold at the split off point.