Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $385,000 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 Output 14,400 pounds 22,400 pounds Product Selling Price A 27.00 per pound $ 21.00 per pound s 33.00 gallon B per $ 5,600 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 Processing Costs 89,220 $129,170 60,160 Selling Price $32.80 per pound $27.80 per pound $41.80 per gallon Product A. 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 product or products should be processed further? Complete this question by entering your answers in the tabs below Required 1Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages" as a negative value.) Product A Product B ProductC Financial advantage (disadvantage) of further rocessin 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 product or products should be processed further? Complete this question by entering your answers in the tabs below. Required 1Required 2 Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? ... Product A Product B Product C Sell at split-off point? Process further? Required 1 Required 2 Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit) Product $80.00 $57.00 $70.00 Selling price Variable expenses: Direct materials 15.00 12.00 37.00 49.00 $32.00 $14.25 $21.00 24.00 Other variable expenses 24.002 Total variable expenses Contribution margin Contribution margin ratio 27.75 42.75 48.00 40% 25% 30% The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,200 pounds available each month Required 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,200 pounds of materials? Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal places.) Product A Product B Product C Contribution margin per pound of the constraining resource Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? Product A Product B ProductC Required 1 Required 3 > materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,200 pounds of materials? (Round your intermediate calculations to 2 decimal places.) aximum contribution margin Required 2 Required3
