Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $330,000 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:

Product	Selling Price		Quarterly Output
A	$ 16.00	per pound	12,200	pounds
B	$ 10.00	per pound	19,100	pounds
C	$ 22.00	per gallon	3,400	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	Additional Processing Costs	Selling Price
A	$ 61,390	$ 20.70	per pound
B	$ 87,645	$ 15.70	per pound
C	$ 35,300	$ 29.70	per gallon

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?

	Product A	Product B	Product C
Sell at split-off point?
Process Further