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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 $93,000 per

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $93,000 per quarter. 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:

ProductSelling PriceQuarterly Output

A$4 per pound13,000 pounds

B$5 per pound18,000 pounds

C$9 per gallon7,000 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:

ProductAdditional Processing CostsSelling Price

A$41,000$6 per pound

B$37,000$9 per pound

C$12,000$11 per gallon

What is the incremental profit/loss(for the following) for product a, product b, and product c?

Product AProduct BProduct C

Selling price after further processing________________________

Selling price at the split-off point________________________

Incremental revenue per pound or gallon________________________

Total quarterly output in pounds or gallons________________________

Total incremental revenue________________________

Total incremental processing costs________________________

Total incremental profit or loss________________________

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