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Dorsey Company manufactures three products from a common input in a joint processing operation, Joint processing costs up to the split-off point total $365,000 per

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Dorsey Company manufactures three products from a common input in a joint processing operation, Joint processing costs up to the split-off point total $365,000 per quarter. For financial reporting purposes, 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 Product Selling Price Output $23.00 per pound 13,600 pounds $17.00 per pound 21,200 pounds $29.00 per gallon 4,800 gallons A B 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 Processing Selling Product Costs $ 78,54 328.40 per pound $113.230 $23.40 per pound $ 50,560 $37.40 per gallon Price A B Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which productor products should be processed further

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