Exercise 12-7 Sell or Process Further Decisions [LO12-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $340,000 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: Product A B Selling Price $ 18.00 per pound $ 12.00 per pound per $ 24.00 gallon Quarterly Output 12,600 pounds 19,700 pounds 3,800 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: Product Additional Processing Costs $66,090 $94,655 $39, 460 Selling Price $22.90 per pound $17.90 per pound $31.90 per gallon B Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the f 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