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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.....................

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..............................

Sell or Process Further

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