Exercise 11-7 Sell or Process Further Decisions (LO11-7) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $325,000 per quarter. For financial reporting purposes, 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: Quarterly Product Selling Price Output $15.00 per pound 12,000 pounds B $ 9.00 per pound 18,800 pounds $21.00 per gallon 3,200 gallons Ench 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 Selling Product Costs $19.60 per pound $84,230 $14.50 per pound 533,280 $28.00 per gallon Price $59.100 B 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, which product or products should be sold at the split-off point and which product or products should be processed further? 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 productor products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? Product A Product C Financial advantage (disadvantage) of further processing Required 2 > Product B 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 productor products should be processed further? Complete this question by entering your answers in the tabs below. Required: Required 2 Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Product Product Product C Sell at spin-off point? Process further?