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

Joint processing costs up to the split$-$off point total $$315,000$ 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 seling 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?