Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $94,000 per quarter. The company allocates these costs to the joint products on 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:

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:

a.	Compute the incremental profit (loss) for each product.

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total S94,000 per quarter. The company allocates these costs to the joint products on 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 Output Product Selling Price S 5 per pound 11,000 pounds S 6 per pound 16,000 pounds S 9 per gallon 7,000 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 Product Processing Costs Selling Price 35,000 7 per pound 37,000 10 per pound 11,000 s 12 per gallon Required: a. Compute the incremental profit (loss) for each product. Product A Product B Product C S 55 6 S 9 Selling price after further processing 7 10 12 Selling price at the split-off point (4) Incremental revenue per pound or gallon Total quarterly output in pounds or gallons 0 0 0 Total incremental revenue Total incremental processing costs S 0 S 0 S Total incremental profit or loss