Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split$-$off point total $$395,000$ 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:

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$[[$Product$,\backslash$table$[[$Additional$],[$Processing$],[$Costs$]],$Selling Price$],[$A$,$$$94,800,$$$,35\mathrm{.}00,$per,pound$],[$B$,$$$137,500,$$$,30\mathrm{.}00,$per,pound$],[$c$,$$$65,200,$$$,44\mathrm{.}00,$per,gallon$]]$

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?

Complete this question by entering your answers in the tabs below.

Required $2$

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