Dorsey Company manufactures three products from a common input in a joint processing operation. Joint

processing costs up to the split$-$off point total $$350,000$ 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:

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:

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.

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

$($Enter "disadvantages" as a negative value.$)$