Chemex produces three products (
A,B
, and
C
) from the same common input
(x),50,000
pounds of
x
will yield
25,000lbs
. of
A,15,000lbs
. of
B
, and
10,000lbs
. of C . The sales values at the split-off point of
A,B
, and C are
$4
per
lb,$5
per lb , and
$6
per lb , respectively. B can be sold at the split-off point or processed further at an additional cost of
$20,000
. If processed further, B can be sold for
$6
per Ib . There is no loss in the manufacturing process. Should B be sold at the split-off point or processed further and what is the difference in profit between the alternatives?