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Excelsior Company manufactures three products in a joint process that costs $235,000. Initial processing results in the following number of units of each product:
Excelsior Company manufactures three products in a joint process that costs $235,000. Initial processing results in the following number of units of each product: Product A 2,700 units Product B 1,600 units Product C 2,100 units At the initial split off point the products can be sold for the prices below: Product A Product B Product C $47 per unit $40 per unit $35 per unit Instead of selling the products at split off, Excelsior could spend an additional $55,000 to process Product A further, which would result in a new sales price for Product A of $70 per unit. Excelsior could also process Product B further at a cost of $70,000, which would result in a new sales price for Product B of $80 per unit and could process Product C further at a cost of (use the last five digits of your student ID for the cost of further processing Product C), resulting in a new sales price for Product C of $45 per unit. The three tasks to complete in the spreadsheet are: 1. Complete the schedule provided to illustrate the financial advantage or disadvantage of further processing each of the products (be sure disadvantages appear as negative numbers). (3 points) 2. Based on your schedule in question #1, put an X in the relevant cell to Indicate which product(s) should be sold at split-off and which processed further? (3 points) 3. Complete the schedule provided to compute the total profit earned if units are sold as Indicated by your answer to question #2. (4 points) Remaining 5 points are for having a working spreadsheet that recalculates if one of the given variables is changed.
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