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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 $345,000 per
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $345,000 per quarter. For financial reportino purposes, the company aliocotes these costs to the joint products bosed on their relative sales volue at the spitf-off point Unit seiling prices and totat output at the split off point are of follows Each product can be processed further ofter the split-oll point. Additional processing requites no special facilities. The additional processing costs (pet quarter) and unit selling prices aftec forther processing are given below: Required: 1. What is the financiat odvantage (ditadvantage) of further procesaing each of the thee products beyond the splat-off point? 2 Bssed on your analysis in requirement 1 , which product or products should be sold at the split-aff point and which should be processed further
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