5 points 04:22:38 eBook Hi P Heferences Exercise 13-7 (Algo) Sell or Process Further Decisions [LO13-7) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $335,000 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: Product A B C Selling Price $17.00 per pound $ 11.00 per pound $23.00 per gallon Quarterly Output 12,400 pounds 19,400 pounds 3,600 gallons 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. Product A B c Required: Additional Processing Costs $63,720 $91,120 $ 37,360 Selling Price $ 21.88 per pound $ 16.00 per pound $ 30.80 per gallon 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?