Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split$-$off point total $$315,000$ per quarter. For financial reporting pupposes, the company allocates these costs to the joint products based on their relative sales value at the splt$-$off point. Unit selling prices and total output at the spilt$-$off point are as follows:

$\backslash$table$[[$Product$,$Selling Price,Quarter $1$ ly output$],[$A$,$$$13\mathrm{.}00$ per pound,$11,600$ pounds$],[$B$,$$$7\mathrm{.}00$ per pound,$18,200$ pounds$],[$C$,$$$19\mathrm{.}00$ per gallon,$2,860$ gallons$]]$

Each product can be processed further after the split$-$off point. Additional processing requlres no speclal facilitles. The additional processing costs $($per quarter$)$ and unit selling prices after further processing are given below:

Required:

What is the financial advantage $($disadvantage$)$ of further processing each of the three products beyond the split$-$off point?

Based on your analysis in requirement $1,$ which product or products should be sold at the split$-$off point and which should be processed further?

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