[Jayhuang]

There is an question in the mock exam, but i dont understand how the answer is 2000 loss?
the question as follow:

FT Co manufactures joint products the Fuy and the Dan, which incur $200,000 joint process costs.

When the products are split off, 30,000 units of the Fuy and 20,000 units of the Dan are produced. Their selling prices are $2.00 for the Fuy and $2.40 for the Dan.

FT Co could process the 30,000 units of Fuy further to make 15,000 units of the Leo. The extra costs incurred would be $20,000 fixed costs and variable costs of $0.40 per unit of Fuy input. The selling price of the Leo would be $6.00.

What would be the gain or loss of processing the Fuy further and manufacturing the Leo?

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