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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 $360,000

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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 $360,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on theybasis 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 Selling Price $22.00 per pound $16.00 per pound $28.00 per gallon Product Output 13,400 pounds A 20,900 pounds 4,600 gallons C 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 Additional Selling Processing Product Costs Price $ 75,970 $109, 395 $27.30 per pound A $22.30 per pound per $36.30 gallon 48,260 C 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 produts should be processed further

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