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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 $350,000 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 $350,000 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 $ 20.00 per pound 13,000 pounds 3 $ 14.00 per pound 20,300 pounds c $26.00 per gallon 4,200 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 A 5 c Additional Processing Costa $ 70,950 $ 101,905 5 43,780 Selling Price $ 25.10 per pound $ 20.10 per pound $ 34.10 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 productor products should be processed further

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