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:

$\backslash$table$[[$Product$,$Selling Price,Quarterly Output$],[$A$,$$$25\mathrm{.}00$ per pound,$14,000$ pounds$],[$B$,$$$19\mathrm{.}00$ per pound,$21,800$ pounds$],[$C$,$$$31\mathrm{.}00$ per gallon,$5,200$ 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:

$\backslash$table$[[\backslash$table$[[$Additional$],[$Processing$]],],[$Product$,$Costs,Selling Price,,$],[$A$,$$$83,800,$$$30\mathrm{.}60$ per pound,,$],[$B$,$$$121,080,$$$25\mathrm{.}60$ per pound,,$],[$C$,$$$55,280,$$$39\mathrm{.}60$ 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.$)$

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