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. 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:

Selling Price Quarterly Output

Product A $ $16$ per kg $15,000$ kg

Product B $ $8$ per kg $20,000$ kg

Product C $ $25$ per litre $4,000$ litres

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 Processing Costs Selling Price

Product A $ $63,000$ $ $20$ per kg

Product B $ $80,000$ $ $13$ per kg

Product C $ $36,000$ $ $32$ per litre

Required:

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

b$.$ Which product or products should be sold at the split$-$off point? $($You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.$)$

check all that apply $1$

Product Aunanswered

Product B

Product Cunanswered

c$.$ Which product or products should be processed further? $($You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.$)$

check all that apply $2$

Product Aunanswered

Product B

Product C