1.) what is the operating profit earned by the four products for one quarter?

2.) Should the division process Product Delta further or sell it at split-off? What is the effect of the decision on quarterly operating profit?

III. Sell or Process further. Danelle, Inc., produces four products (Alpha, Beta, Gamma and Delta) from a common input. The joint costs for a typical quarter follow: Direct materials Direct labor Overhead $128.000 56,000 80,000 The revenues from each product are as follows: Alpha, $130,000; Beta, 893,000; Gamma, $30,000; and Delta, $40,000. Management is considering processing Delta beyond the split-off point, which would increase the sales value of Delta to $73,700. However, to process Delta further means that the company must rent some special equipment costing $15,400 per quarter. Additional materials and labor also needed would cost $8,500 per quarter. Required: 1. What is the operating profit earned by the four products for one quarter? 2. Should the division process Product Delta further or sell it at split-off? What is the effect of the decision on quarterly operating profit