EXERCISE 13-12 Sell or Process Further (L06) Dorsey Company manufactures three products from a common input in a joint processing opera- tion. Joint processing costs up to the split-off point total $350,000 per quarter. The company allo- cates 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 C. Selling Price $16 per pound $8 per pound $25 per gallon Quarterly Output 15,000 pounds 20,000 pounds 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: Product A B Additional Processing Costs $63,000 $80,000 $36,000 Selling Price $20 per pound $13 per pound $32 per gallon Required: Which product or products should be sold at the split-off point and which product or products should be processed further? Show computations