Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $355,000 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	$21.00	per pound	13,200	pounds
B	$15.00	per pound	20,600	pounds
C	$27.00	pergallon	4,400	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:

Product	Additional Processing Costs	Selling Price
A	$ 73,440	$26.20	per pound
B	$105,620	$21.20	per pound
C	$46,000	$35.20	pergallon

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?

• Required 1
• Required 2

What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?(Enter "disadvantages" as a negative value.)

	Product A	Product B	Product C
Financial advantage (disadvantage) of further processing