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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

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $98,000 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: ProductSelling Price QuarterlyOutputA$4 per pound 12,000 poundsB$5 per pound 17,000 poundsC$13 per gallon 5,000 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: ProductAdditionalProcessing CostsSelling PriceA$44,000 $7 per pound B$40,000 $9 per poundC$11,500 $16 per gallon Required:a.Compute the incremental profit (loss) for each product.

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