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Data Exhibit 1 3 - 5 Santa Maria Wool Cooperative Cost of wool $ 2 0 9 , 0 0 0 Cost of separation process
Data Exhibit Santa Maria Wool Cooperative Cost of wool $ Cost of separation process $ Sales value of intermediate products at splitoff point: Undyed coarse wool $ Undyed fine wool $ Undyed superfine wool $ Costs of further processing dyeing intermediate products: Undyed coarse wool $ Undyed fine wool $ Undyed superfine wool $ Sales value of end products: Dyed coarse wool $ Dyed fine wool $ Dyed superfine wool $ Enter a formula into each of the cells marked with a below Example: Joint Product Costs and the Contribution Approach Analysis of the profitability of the overall operation: Combined final sales value $ Less costs of producing the end products: Cost of wool $ Cost of separation process $ Combined costs of dyeing $ Profit $ Analysis of sell or process further: Coarse Fine Superfine Wool Wool Wool Final sales value after further processing $ $ $ Less sales value at the splitoff point $ $ $ Incremental revenue from further processing $ $ $ Less cost of further processing dyeing $ $ $ Financial advantage disadvantage of further processing $ $ $ c 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? c If your recommendation in part c is followed, what would be the companys overall profit? Overall profit from following the plan in part c
Data
Exhibit Santa Maria Wool Cooperative
Cost of wool $
Cost of separation process $
Sales value of intermediate products at splitoff point:
Undyed coarse wool $
Undyed fine wool $
Undyed superfine wool $
Costs of further processing dyeing intermediate products:
Undyed coarse wool $
Undyed fine wool $
Undyed superfine wool $
Sales value of end products:
Dyed coarse wool $
Dyed fine wool $
Dyed superfine wool $
Enter a formula into each of the cells marked with a below
Example: Joint Product Costs and the Contribution Approach
Analysis of the profitability of the overall operation:
Combined final sales value $
Less costs of producing the end products:
Cost of wool $
Cost of separation process $
Combined costs of dyeing $
Profit $
Analysis of sell or process further:
Coarse Fine Superfine
Wool Wool Wool
Final sales value after further processing $ $ $
Less sales value at the splitoff point $ $ $
Incremental revenue from further processing $ $ $
Less cost of further processing dyeing $ $ $
Financial advantage disadvantage of further processing $ $ $
c 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?
c If your recommendation in part c is followed, what would be the companys overall profit?
Overall profit from following the plan in part c
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