Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split$-$off point total $$330,000$ 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:

$\backslash$table$[[$Product$,$Selling Price,Quarterly output$],[$A$,$$$16\mathrm{.}00$ per pound,$12,200$ pounds$],[$B$,$$$10\mathrm{.}00$ per pound,$19,100$ pounds$],[$C$,$$$22\mathrm{.}00$ per gallon,$3,400$ 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:

$\backslash$table$[[,\backslash$table$[[$Additional$],[$Processing$]],],[$Product$,$Costs,Selling Price$],[,$$$61,390,$$$20\mathrm{.}70$ per pound$],[$E$,$$$87,645,$$$15\mathrm{.}70$ per pound$],[$c$,$$$35,300,$$$29\mathrm{.}70$ per gallon$]]$

Required:

What is the financial advantage $($disadvantage$)$ of further processing each of the three products beyond the split$-$off point?

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?

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