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a. What is the overall profit if all intermediate products are processed into final products? b. What is the financial advantage (disadvantage) from further processing?

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a. What is the overall profit if all intermediate products are processed into final products?

b. What is the financial advantage (disadvantage) from further processing?

c-1. With these new costs and selling prices, what recommendations would you make concerning the companys operations?

c-2. If your recommendation in part (c-1) is followed, what would be the companys overall profit?

A B 1 Chapter 13: Applying Excel N 3 5 CA 226,000 40,000 6 CA $ 7 00 8 D $ $ 132,000 149,000 72,000 10 CA Data 4 Exhibit 13-7 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 11 Costs of further processing (dyeing) intermediate products: 12 Undyed coarse wool 13 Undyed fine wool 14 Undyed superfine wool 15 Sales value of end products: 16 Dyed coarse wool 17 Dyed fine wool Dyed superfine wool $ $ 50,000 60,000 10,000 $ $ 161,000 212,000 87,000 18 $

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