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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 $92,000 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 $92,000 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 $ 3 per pound 16,000 pounds
B $ 5 per pound 21,000 pounds
C $ 10 per gallon 6,000 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 $ 38,000 $ 5 per pound
B $ 40,000 $ 8 per pound
C $ 11,000 $ 14 per gallon

Required

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

image text in transcribed

Got lost half way Help & explain your steps please! Required: a. Compute the incremental profit (oss) for each product. Product A Product B Product C Selling price after further processing 5 8 14 Selling price at the split-off point 3 5 10 2 3 4 Incremental revenue per pound or gallon Total quarterly output in pounds or gallons Total incremental revenue 0 0 0 Total incremental processing costs s 0 S 0 S Total incremental profit or loss b. Which product or products should be sold at the split-off point? (You may select more than one answer. Single click the box wi 2 Product A 2 Product B 2 Product c c. Which product or products should be processed further? (You may select more than one answer. Single click the box with a ch 2 Product A 2 Product B 2 Product C

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