Harris Corp The "Further Processing Costs" Consist of Variable and Avoidable Fixed

Essay

Harris Corp.manufactures three products from a common input in a joint processing operation.Joint processing costs up to the split-off point total $200,000 per year.The company allocates these costs to the joint products on the basis of their total sales value at the split-off point.Each product may be sold at the split-off point or processed further.The additional processing costs and sales value after further processing for each product (on an annual basis)are:
$\begin{array}{|l|r|r|r|}\hline \text { Product } & \begin{array}{r}\text { Sales Value } \\\text { at Split-Off }\end{array} & \begin{array}{r}\text { Further } \\\text { Processing Cost }\end{array} & \begin{array}{r}\text { Sales Value after Further } \\\text { Processing }\end{array} \\\hline \mathrm{T} & \$ 180,00 \mathrm{~d} & \$ 60,000 & \$ 230,000 \\\hline \mathrm{K} & \$ 135,000 & \$ 105,000 & \$ 280,000 \\\hline \mathrm{L} & \$ 95,000 & \$ 85,000 & \$ 160,000 \\\hline\end{array}$
The "Further Processing Costs" consist of variable and avoidable fixed costs.
Required:
Which product or products should be sold at the split-off point,and which product or products should be processed further? Show computations.