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?

1 Chapter 12: Applying Excel 2 3 Data 4 Exhibit 12-7 Santa Maria Wool Cooperative 5 Cost of wool 6 Cost of separation process 7 Sales value of intermediate products at split-off point: 8 $161,000 40,000 $136,000 $130,000 70,000 Undved coarse wool Undyed fine wool 10 Undyed superfine wocl 11 Costs of further processing (dyeing) intermediate products 12Undyed coarse wool 13Undyed fine wool 14Undved superfine wool 15 Sales value of end products 16 Dyed coarse wool 1/Dyed tine wool 18Dyed superfine wool 50,000 60,000 10,000 $ 151,000 $ 225,000 89,000