2 Calculate the contribution wa to make Love Seats? Assuming that Barlow has up life the nearby upholstering company? Explain. 3. bution margin the company can earn EXERCISE 11-7 Sell or Process Further Decisions LO11-7 Assuming that Barlow's esti Dorsey Company manufactures three products from a common input in a joint processing operation. Joint hand? mum contribution margin the company can earn sher the 6010 processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the 4. A foreign supplier could furnish Barton with no life company allocates these costs to the joint products on the basis of their relative sales value at the split-off mium over the usual price. Assuming Bulow's tsi point. Unit selling prices and total output at the split-off point are as follows: line and that the company has used its 6.000 pound highest price Barlow Company should be willing to EXERCISE 11-9 Special Order Decision L01 1-4 Product Selling Price Quarterly Output Delta Company produces a single product, The cost of at the company's normal activity level of 60.000wins A. $16 per pound 15,000 pounds B. Direct materials . . $8 per pound 20,000 pounds C. $25 per gallon 4,000 gallons Direct labor... Variable manufacturing overhead Fixed manufacturing overhead Each product can be processed further after the split-off point. Additional processing requires no special Variable selling and administrat facilities. The additional processing costs (per quarter) and unit selling prices after further processing are Fixed selling and administrative given below: The normal selling price is $21 per unit. The been received from a mail-order house for would not affect regular sales or the company Additional Selling Price Processing Costs Required: Product $20 per pound 1. What is the financial advantage (disa $63,000 $13 per pound 2. As a separate matter from the speci A. ... ........ $80,000 this product that were produced last B. $32 per gallon $36,000 sold through regular channels at red C. nor units to have any affect on the a minimum selling price for the in EXERCISE 11-10 Make or Buy De Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond Futura Company purchases the 40, supplier for the price of $8.40 per the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off that could be used to produce the company's chief engineer is oppos point and which product or products should be processed further? le costs, and contri- LO11-6