Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $99,000 per quarter. 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	$	4	per pound		15,000	pounds
B	$	5	per pound		20,000	pounds
C	$	13	per gallon		5,000	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	$	44,000		$	5	per pound
B	$	39,000		$	8	per pound
C	$	17,000		$	17	per gallon

Required:
a.	Compute the incremental profit (loss) for each product.

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $99,000 per quarter. 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: Quarterly Output 15,000 pounds 20,000 pounds 5,000 gallons Product Selling Price $ 4 per pound S 5 per pound $ 13 per gallon Each product can be p facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: d further after the split-off point. Additional processing requires no special Additional Processing Costs S 44,000 39,000 S 17,000 Product Selling Price S 5 per pound $ 8 per pound $17 per gallon Required a. Compute the incremental profit (loss) for each product. Product A Product B Product C Selling price after further processing Selling price at the split-off point Incremental revenue per pound or gallon Total quarterly output in pounds or gallons Total incremental revenue Total incremental processing costs Total incremental profit or loss