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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 $310,000 per

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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 $310,000 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 Quarter Selling Price A 12.00 per pound B s6.60 per pound 17,98 pounds c18.00 per gallon Output 11,400 pounds 2,600 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additiona processing costs (per quarter) and unit selling prices after further processing are given below Selling Price Additi uct Processing Costs $52,470 16.30 per pound 74, 345 $11.30 per pound $27,468 $25.30 per gallor Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. 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

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