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A B 1 3 4 5 $ $ 168,000 40,000 7 8 $ $ Chapter 13: Applying Excel 2 Data Exhibit 13-7 Santa Maria Wool
A B 1 3 4 5 $ $ 168,000 40,000 7 8 $ $ Chapter 13: Applying Excel 2 Data Exhibit 13-7 Santa Maria Wool Cooperative Cost of wool 6 Cost of separation process Sales value of intermediate products at split-off point: Undyed coarse wool 9 Undyed fine wool Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products: Undyed coarse wool 13 Undyed fine wool Undyed superfine wool 15 Sales value of end products: 16 Dyed coarse wool Dyed fine wool 18 Dyed superfine wool $ $ 118,000 172,000 52,000 10 12 $ $ 50,000 60,000 10,000 14 CA $ G LA 17 $ $ $ 165,000 212,000 93,000 If your formulas are correct, you should get the correct answers to the following questions. a. What is the overall profit if all intermediate products are processed into final products? Overall profit from processing all intermediate products b. What is the financial advantage (disadvantage) from further processing? from further processing undyed coarse wool from further processing undyed fine wool from further processing undyed superfine wool C-1. With these new costs and selling prices, what recommendations would you make concerning the company's operations? 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? C-2. If your recommendation in part (C-1) is followed, what would be the company's overall profit? Overall profit from following the plan in part (c)
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