Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split$-$off point total $$320,000$ 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:

$\backslash$table$[[$Product$,$Selling Price,Quarterly output$],[$A$,$$$14\mathrm{.}00$ per pound,$11,800$ pounds$],[$B$,$$$8\mathrm{.}00$ per pound,$18,500$ pounds$],[$C$,$$$20\mathrm{.}00$ per gallon,$3,000$ 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:

$\backslash$table$[[,\backslash$table$[[$Additional$],[$Processing$],[$Costs$]],],[$Product$,$Selling Price,$],[$A$,$$$56,850,$$$18\mathrm{.}50$ per pound$],[$B$,$$$80,875,$$$13\mathrm{.}50$ per pound$],[$C$,$$$31,300,$$$27\mathrm{.}50$ 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 $1$

Required $2$

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

$($Do not round your intermediate calculations. Enter "disadvantages" as a negative value.$)$

$\backslash$table$[[$Financial advantage $($disadvantage$)$ of further processing,Product A$,$Product B$,$Product C$]]$