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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 $380,000 per
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $380,000 per quarter. For financlal 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: Each product can be processed furhier after the split-off point. Additional processing requires no special focilities. The additional processing costs (per quartet) and unit selling pilces after further processing are given below: Required: 1. What is the firancial advantage (disadvantage) of further processing each of the three producis beyond the spitt off point? 2. Based on your analyis in iequirement 1, which product or products should be sold at the split-off point and which product or products shoukd be processed further
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