EXERCISE 12-7 Sell or Process Further Decisions L012-7 Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting pur- poses, 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 Selling Price Quarterly Output $16 per pound 15.000 pounds $8 per pound 20,000 pounds $25 per gallon 4,000 gallons 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 Selling Product Processing Costs Price $63,000 $20 per pound B $80,000 $13 per pound $36,000 $32 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three prod- ucts 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 product or products should be processed further