Whitehall Corporation produces chemicals used in the cleaning industry. During the previous month Whitehall incurred USD300,000 of joint costs in producing 60,000 units of AM-12 and 40,000 units of BM-36. Whitehall uses the units-of-production method to allocate joint costs. Currently, AM-12 is sold at split-off for USD3.50 per unit. Flank Corporation has approached Whitehall to purchase all of the production of AM-12 after further processing. The further processing will cost Whitehall USD90,000.Concerning AM-12, which one of the following alternatives is most advantageous?
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