Pinto company Limited processes materials into finished products. After process one, two main products PEF and CEF are turned out. The production processes allow for 10% normal loss at process one and 5% for each product if it is to be processed further. The scrap at process one can be sold for GH¢6.60 per unit. The standard prices of the products are as follows; PEF to be sold at split off point GH¢17 per unit but can be sold for GH¢28 per unit after further processing. A unit of CEF can also be sold for GH¢16 at split off point or GH¢ 25 after further processing. Further processing costs are; PEF; direct materials GH¢4 per unit and conversion GH¢3.50 per unit. The materials and conversion costs per unit for CEF are GH¢5 and GH¢4 respectively.
In the month of August 2016 6,000 units were processed through process one at the following costs; direct materials GH¢40,000, conversion GH¢32,000. The output at the end of process one were 3,000 units for PEF and 2,000 units for CEF.

Required:
Advise management which of the products should be processed further and which should be sold at split off point if volume is used to share common cost.                                                                                                                                              (12 marks)