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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 $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?

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