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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 $325,000 per

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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 $325,000 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 A B C Selling Price $ 15.00 per pound $ 9.per pound $ 21.00 per gallon Quarterly Output 12.000 pounds 18,800 pounds 3,200 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: Additional Product Processing Costs $59,100 $84,230 $33,280 Selling Price $19.60 per pound $14.60 per pound $28.60 per gallon Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? Product Product B Product C Financial advantage (disadvantage) of further processing 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? Product Product B Product C Sell at split-off point? Process further

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