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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

Dorsey Company manufactures three products from a common input in a joint
processing operation. Joint processing costs up to the split-off point total $100,000 per
quarter. 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:
a. Compute the incremental profit (loss) for each product.
b. Which product or products should be sold at the split-off point? (You may select more
than one answer. Single click the box with a check mark for correct answers and
double click to empty the box for the wrong answers.)
Product A
Product B
Product C
c. Which product or products should be processed further? (You may select more than
one answer. Single click the box with a check mark for correct answers and double
click to empty the box for the wrong answers.)
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