$230,000 $40,000 $120,000 $ 166,000 $70,000 Data Exhibit 11-7 Santa Maria Wool Cooperative Cost of wool Cost of separation process Sales value of intermediate products at split-off point: Undyed coarse wool Undyed fine wool Undyed superfine wool Costs of further processing (dyeing) intermediate products: Undyed coarse wool Undyed fine wool Undyed superfine wool Sales value of end products: Dyed coarse wool Dyed fine wool Dyed superfine wool $50,000 $60,000 $10,000 $168,000 $195,000 $88,000 Enter a formula into each of the cells marked with a ? below Example: Joint Product Costs and the Contribution Approach $ 451,000 Analysis of the profitability of the overall operation: Combined final sales value Less costs of producing the end products: Cost of wool Cost of separation process Combined costs of dyeing Profit $ 230,000 $40,000 $120,000 390,000 61,000 $ Analysis of sell or process further: Final sales value after further processing Less sales value at the split-off point Incremental reve ue from further sing Less cost of further processing (dyeing) Financial advantage (disadvantage) of further processing Coarse Wool $168,000 $120,000 $48,000 $50,000 -$2,000 Fine Wool $195,000 $166,000 $29,000 $60,000 $31,000 Superfine Wool $88,000 $10,000 $78,000 $10,000 $68,000 b. What is the financial advantage (disadvantage) from further processing? X Answer is complete but not entirely correct. $ Financial (disadvantage) Financial (disadvantage) Financial advantage from further processing undyed coarse wool from further processing undyed fine wool from further processing undyed superfine wool $ (2,000) (31,000) 68,000 $ C-1. With these new costs and selling prices, what recommendations would you make concerning the compa Answer is complete and correct. Sell as is Sell as is or process further the intermediate product undyed coarse wool? Sell as is or process further the intermediate product undyed fine wool? Sell as is or process further the intermediate product undyed superfine wool? Sell as is Process further c-2. If your recommendation in part (C-1) is followed, what would be the company's overall profit? X Answer is not complete. Overall profit from following the plan in part (c)