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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 $300,000 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:
Product Selling Price Quarterly Output
A $ 10.00 per pound 11,000 pounds
B $ 4.00 per pound 17,300 pounds
C $ 16.00 per gallon 2,200 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:
Product Additional Processing Costs Selling Price
A $ 48,250 $ 14.10 per pound
B $ 68,055 $ 9.10 per pound
C $ 23,780 $ 23.10 per gallon
Required:
1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?
2. 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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