Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $99,000 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: Selling Price Quarterly Output $ 3 per pound 15,000 pounds $ 5 per pound 20,000 pounds $ 16 per gallon 4,000 gallons Product 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: Product B Additional Processing Costs $ 40,000 $ 40,000 $ 12,750 Selling Price $ 5 per pound $ 8 per pound $ 20 per gallon Required: a. Compute the incremental profit (loss) for each product. Product A Product B Product C 0 0 0 Selling price after further processing Selling price at the split-off point Incremental revenue per pound or gallon Total quarterly output in pounds or gallons Total incremental revenue Total incremental processing costs Total incremental profit or loss 0 0 0 S 0 $ 0 $ 0