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1 Exercise 6-7 (Algo) Sell or Process Further Decisions (L06-7) 2 points Dorsey Company manufactures three products from a common input in a joint processing

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1 Exercise 6-7 (Algo) Sell or Process Further Decisions (L06-7) 2 points Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $360,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: eBook Product Selling Price Quarterly Output 13,400 pounds A $ 22.00 per pound Hint B 20,900 pounds $ 16.00 per pound $ 28.00 per Print gallon 4,600 gallons References Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Selling Product Costs Price $ 75,970 pound $109,395 $22.30 per pound $ 48,260 $36.30 per gallon $27.30 per B Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages" as a negative value.) Product A Product B Product C Financial advantage (disadvantage) of further processing 2

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