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A B 1 Chapter 13: Applying Excel N 3 $ AGA 197,000 40,000 $ $ 8 9 $ | | U 138,000 155,000 72,000 $
A B 1 Chapter 13: Applying Excel N 3 $ AGA 197,000 40,000 $ $ 8 9 $ | | U 138,000 155,000 72,000 $ Data 4 Exhibit 13-7 Santa Maria Wool Cooperative 5 Cost of wool 6 Cost of separation process 7 Sales value of intermediate products at split-off point: 8 Undyed coarse wool 9 Undyed fine wool 10 Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products: 12 Undyed coarse wool Undyed fine wool Undyed superfine wool 15 Sales value of end products: Dyed coarse wool 17 Dyed fine wool Dyed superfine wool $ 13 $ $ 50,000 60,000 10,000 14 16 $ $ 146,000 204,000 94,000 18 $ 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 $ 324.000 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 rec mendation 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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