Cost of wool $161000

Cost of separation process $40000

Sales value of intermediate products at split-off point:

Undyed coarse wool $136000

Undyed fine wool $137000

Undyed superfine wool $51000

Costs of further processing (dyeing) intermediate products:

Undyed coarse wool $50000

Undyed fine wool $60000

Undyed superfine wool $10000

Sales value of end products:

Undyed coarse wool $146000

Undyed fine wool $226000

Undyed superfine wool $98000

In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following:

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?

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 companys 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?

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

Overall profit from following the plan in part (c)