Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split$-$off point total $$360,000$ per quarter. For financial reporting purposes, the company allocates these costs to the joint products based on their relative sales value at the splitoff point. Unit selling prices and total output at the split$-$off point are as follows:

$\backslash$table$[[$Product$,$Selling Price,Quarterly Output$],[$A$,$$$22\mathrm{.}00$ per pound,$13,400$ pounds$],[$B$,$$$16\mathrm{.}00$ per pound,$20,900$ pounds$],[$C$,$$$28\mathrm{.}00$ per gallon,$4,600$ 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$],[$Costs$]],],[$Product$,$$$75,970,$$$27\mathrm{.}30$ per pound$],[$A$,$$$109,395,$$$22\mathrm{.}30$ per pound$],[$B$,$$$109,260,$$$36\mathrm{.}30$ per gallon$],[$C$,$$$48,260,]]$

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 should be processed further?

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