1 Chapter 12: Applying Excel 3 Data 4 Exhibit 12-7 Santa Maria Wool Cooperative 5 Cost of wool $200,000 6 Cost of separation process $40,000 7 Sales value of intermediate products at split-off point 8 Undyed coarse wool 9 Undved fine wool $120,000 $150,000 10 Undved superfine wool $60,000 11 Costs of further processing (dyeing) intermediate products 12 Undyed coarse wool $50,000 $60,000 13 Undyed fine wool 14 Undved superfine wool $10,000 15 Sales value of end products 16 Dy 17 Dyed fine wool 18 Dyed superfine wool 19 ed coarse wool $160,000 $240,000 $90,000 20 Enter a formula into each of the cells marked with a ? below 21 Example: Joint Product Costs and the Contribution Approach 1 Example: Joint Product Costs and the Contribution Approach Analysis of the profitability of the overall operation Combined final sales value 5 Less costs of producing the end products 5 Cost of wool 7 Cost of separation process Combined costs of dyeing Profit 1 Analysis of sell or process further: Coarse Superfine Wool ine Wool Wool 4 Final sales value after further processing 5 Less sales value at the split-off point Incremental revenue from further processing 7 Less cost of further processing (dyeing) Financial advantage (disadvantage) of further pocessing