1 Chapter 12: Applying Excel 3 Data 4 Exhibit 12-7 Santa Maria Wool Cooperative 5 Cost of wool 6 Cost of separation process 7 Sales value of intermediate products at split-off point 8 Undyed coarse wool 9 Undyed fine wool 10 Undved superfine wool 11 Costs of further processing (dyeing) intermediate products 12 Undyed coarse wool 13 Undyed fine wool 14 Undved superfine wool 15 Sales value of end products 16 $166,000 $40,000 $137,000 $133,000 $54,000 $50,000 $60,000 $10,000 ed coarse wool $149,000 $226,000 $93,000 17 Dyed fine wool 18 Dyed superfine wool 19 20 Enter a formula into each of the cells marked with a? below 21 Example: Joint Product Costs and the Contribution Approach 23 Analysis of the profitability of the overall operation 24 Combined final sales value 25 Less costs of producing the end products 26 Cost of wool 27 Cost of separation process 28 Combined costs of dyeing 29 Profit 30 1 Analysis of sell or process further: 32 $ 468,000 $166,000 $40,000 $120,000326,000 $ 142,000 Fine Superfine Wool Coarse Wool 34 Final sales value after further processing 35 Less sales value at the split-off point 36 Incremental revenue from further processing 37 Less cost of further processing (dyeing) 38 Financial advantage (disadvantage) of further processing Wool $149,000$226,000$93,000 $137,000$133,000$54,000 $12,000$93,000 $39,000 $50,000 $60,000 $10,000 $38,000$33,000$29,000