Annie B’s Homemade Ice Cream is an ice cream shop in Asheville, NC. Annie's Homemade makes the brownies it adds to vanilla fudge brownie ice cream. The company is deciding whether it should sell brownies as a stand-alone product or always cut them into smaller pieces and add them to the vanilla fudge brownie ice cream. The cost to make 12 three-ounce brownies is $4.00. Each three-ounce brownie could be sold for $2.00. It costs $0.20 to cut a three-ounce brownie into pieces and add it to ice cream. A six-ounce serving of vanilla fudge brownie uses one ounce of brownies plus $1.10 of other ingredients and labor while selling for $5.00.

1. What total revenue does Annie's earn when it adds a three-ounce brownie to servings of vanilla fudge brownie ice cream?
2. What is the sales value of a three-ounce brownie at the split-off point?
3. What is the incremental revenue from further processing a three-ounce brownie?
4. What is Annie's total cost of further processing if it chooses to include each three-ounce brownie in servings of vanilla fudge brownie ice cream?
5. What is the financial advantage (disadvantage) of further processing a three-ounce brownie into servings of vanilla fudge brownie ice cream?