B A 1 Chapter 11: Applying Excel 2 2 $ 160,000 40,000 $ $ GO AGA 128,000 133,000 79,000 $ 3 Data 4 Exhibit 11-7 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 13 Undyed fine wool 14 Undyed superfine wool 15 Sales value of end products: 16 Dyed coarse wool 17 Dyed fine wool 18 Dyed superfine wool $ $ 50,000 60,000 10,000 $ $ $ $ 156,000 235,000 87,000 S 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 fino 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)