Exercise 12-12 Sell or Process Further [LO2] 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: Product A Product B Product C Selling Price $ 16 per kg $ 8 per kg $25 per litre Quarterly Output 15,000 kg 20,000 kg 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 Product B Product C $ 63,000 $ 20 per kg $ 80,000 $ 13 per kg $ 36,000 $ 32 per litre Required: a. Compute the Incremental profit (loss) for each product. Selling price after further processing Selling price at the split-off point Incremental revenue per kg or gallon Total quarterly output in kgs or gallons Total incremental revenue Product A Product B Product C 0 0 0 0 0 0 Total incremental processing costs Total incremental profit or loss $ 0 $ 0 $ 0