Question
Dorsey Company manufactures three products from a common input in a joint processing operation. Each product can be processed further after the split-off point. Additional
Dorsey Company manufactures three products from a common input in a joint processing operation. Each product can be processed further after the split-off point. Additional processing requires no special facilities. Unit selling prices and total output at the split-off point and the additional processing costs (per quarter) and unit selling prices after further processing are as follows:
Product | Selling Price | Quarterly Output | Additional Processing costs | Selling Price |
A | $16 per LB | 15000 LBS | $63000 | $20 per LB |
B | $8 per LB | 20000 LBS | $80000 | $13 per KB |
C | $25 a gallon | 4000 Gallons | $38000 | $32 per gallon |
Please fill-out the table using the above information:
Product | A | B | C |
Selling price after further processing..................... |
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Selling price at the split-off point.......................... |
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Incremental revenue per pound or gallon.............. |
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Total quarterly output in pounds or gallons........... |
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Total incremental revenue...................................... |
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Total incremental processing costs........................ |
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Total incremental profit or loss.............................. |
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Sell or Process Further |
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