Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell C26 enter the formula "= B5". Verify that your worksheet matches the example in the text Check your worksheet by changing the cost of further processing undyed coarse wool in cell B12 to $30,000. The overall financial advantage (disadvantage) from processing all intermediate products into final products should now be $150,000 and the financial advantage (disadvantage) from further processing undyed coarse wool should now be $10,000. If you do not get these answers, find the errors in your worksheet and correct them Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this worksheet to answer the questions in Part 2. Chapter 12: Applying Excel Data Exhibit 12-7 Santa Maria Wool Cooperative Cost of wool $200,000 $40,000 Cost of separation process Sales value of intermediate products at split-off point: Undyed coarse wool Undyed fine wool Undyed superfine wool Costs of further processing (dyeing) intermediate products: Undyed coarse wool Undyed fine wool Undyed superfine wool Sales value of end products: $120,000 $150,000 $60,000 $50,000 $60,000 $10,000 Dyed coarse wool Dyed fine wool Dyed superfine wool $160,000 $240,000 $90,000 Enter a formula into each of the cells marked with a ? below Example: Joint Product Costs and the Contribution Approach Analysis of the profitability of the overall operation: Combined final sales value ? Less costs of producing the end products: Cost of wool ? Cost of separation process Combined costs of dyeing ? ? ? Profit Analysis of sell or process further: Superfine Coarse Fine Wool Wool Wool Final sales value after further processing Less sales value at the split-off point Incremental revenue from further processing Less cost of further processing (dyeing) Financial advantage (disadvantage) of further processing ? ? ? ? ? ? ? ? ? ? ? ? 2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following: B A 1 ]Chapter 12: Applying Excel 2 3 Data 4 Exhibit 12-7 Santa Maria Wool Cooperative 5 Cost of wool Cost of separation process 7 Sales value of intermediate products at split- off point: Undyed coarse wool Undyed fine wool Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products: Undyed coarse wool Undyed fine wool Undyed superfine wool 15 Sales value of end products: $195,000 40,000 6 110,000 $171,000 56,000 8 9 10 $ 50,000 $ 60,000 $ 10,000 12 13 14 Dyed coarse wool Dyed fine wool Dyed superfine wool $163,000 16 $ 229,000 $ 91,000 17 18 If your formulas are correct, you should get the correct answers to the following questions. a. What is the overall profit if all intermediate products are processed into final products? Overall profit from processing all intermediate products b. What is the financial advantage (disadvantage) from further processing? from further processing undyed coarse wool from further processing undyed fine wool from further processing undyed superfine wool FN"N"M c-1. With these new costs and selling prices, what recommendations would you make concerning the company's operations? Sell as is or process further the intermediate product undyed coarse wool? Sell as is or process further the intermediate product undyed fine wool? Sell as is or process further the intermediate product undyed superfine wool? c-2. If your recommendation in part (c-1) is followed, what would be the company's overall profit? Overall profit from following the plan in part (c) 2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following: A 1 Chapter 12: Applying Excel 2 Data 4 Exhibit 12-7 Santa Maria Wool Cooperative 5 Cost of wool 6 Cost of separation process Sales value of intermediate products at split- 240,000 $ 40,000 7 off point: Undyed coarse wool Undyed fine wool Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products: Undyed coarse wool Undyed fine wool Undyed superfine wool 128,000 $128,000 $76,000 8 10 50,000 60,000 10,000 12 13 14 15 Sales value of end products: Dyed coarse wool Dyed fine wool Dyed superfine wool $155,000 $231,000 $ 94,000 16 17 18 If your formulas are correct, you should get the correct answers to the following questions. a. What is the overall profit if all intermediate products are processed into final products? Overall profit from processing all intermediate products b. What is the financial advantage (disadvantage) from further processing? from further processing undyed coarse wool from further processing undyed fine wool from further processing undyed superfine wool c-1. With these new costs and selling prices, what recommendations would you make concerning the company's operations? Sell as is or process further the intermediate product undyed coarse wool? Sell as is or process further the intermediate product undyed fine wool? Sell as is or process further the intermediate product undyed superfine wool? c-2. If your recommendation in part (c-1) is followed, what would be the company's overall profit? Overall profit from following the plan in part (c)