Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split$-$off point total $$325,000$ 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$,$$$15\mathrm{.}00$ per pound,$12,000$ pounds$],[$B$,$$$9\mathrm{.}00$ per pound,$18,800$ pounds$],[$C$,$$$21\mathrm{.}00$ per gallon,$3,200$ 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:

Product

$\backslash$table$[[$Additional$],[$Processing$],[$Costs$]]$ Selling Price

$\backslash$table$[[$A$,$$$59,100,$$$19\mathrm{.}60$ per pound$],[$B$,$$$84,230,$$$14\mathrm{.}60$ per pound$],[C,$$$33,280,$$$28\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.

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$]]$

Prev

$6$ of $7$

Nex