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1 Problem Data 2 3 Joint Costs Jx B C D E F G H J K L M N $235,000 4 5 Product

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1 Problem Data 2 3 Joint Costs Jx B C D E F G H J K L M N $235,000 4 5 Product Units produced Selling price at split off 6 Product A 2,700 $47 per unit 7 Product B 1,600 $40 per unit 8 Product C 2,100 $35 per unit 9 10 Selling price after 11 further processing Additional processing costs 12 Product A $70 $55,000 13 Product B $80 $70,000 14 Product C $45 63743 *Input last 5 digits of student ID in yellow highlighted cell 15 16 REQUIRED 17 18 1 19 Complete the chart below (example on page 535 of text) to illustrate the financial advantage or disadvantage of further processing of each product. Be sure disadvantages appear as negative numbers. 20 21 Total Sales value after further processing 22 Less sales value at split off 23 Incremental revenue from further processing 24 Less cost of further processing 25 Financial advantage (disadvantage) of further processing Product A Product B Product C $189,000 $128,000 $94,500 $126,900 $64,000 $73,500 $62,100 $64,000 $21,000 $55,000 $70,000 $63,743 $7,100 ($6,000) ($42,743) 26 27 2 28 Sold at split off Based on your chart in question 1, put an X in the relevant cell for each of the products to indicate whether it should be sold at split-off or processed further. You do NOT need to use formulas for Part 2 29 Product A Processed further X 30 Product B 31 Product C X X 32 33 3 34 Complete the schedule provided to compute the total profit earned if units are sold as indicated by your answer to question 2 If Product C is If Product C is NOT 35 processed further processed further 20 36 37 38 39 40 Total Sales Total joint costs Total further processing costs Profit 41 42 43 44 Sheet1 +

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