Answer the following:

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to split-off point total $345,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint product 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: Quarterly Product Selling Price Output A $ 19.00 per pound 12, 800 pounds B $ 13. 00 per pound 20, 000 pounds C $ 25.00 per gallon 4,000 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: Additional Selling Product Processing Costs Price A $68, 500 $24.00 per pound B $98, 250 $19.00 per pound $41, 600 $33.00 per gallon Required: 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