Exercise 6-7 (Algo) Sell or Process Further Decisions (L06-7) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $320,000 per quarter . For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative soles 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 $ 14.00 per pound 11,800 pounds $ 8.00 per pound 18,500 pounds $ 20.00 per gallon 3,000 gallons A B 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 $56,85e $80,875 $31,3ee Selling Price $18.50 per pound $13.50 per pound $27.50 per gallon 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 product or products should be processed further