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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 $375,000 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 $375,000 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: Quarterly Selling Price Output $ 25.00 per pound 14,000 pounds $ 19.00 per pound 21,800 pounds $ 31.00 per gallon 5,200 gallona Product A B 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 A 3 Additional Processing Costs $ 83,800 $121,080 $ 55,280 Selling Price $30.60 per pound $25.60 per pound $39.68 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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