Exercise 6-7: Sell or Process Further Decisions Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $305,000 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 Selling Price Quarterly Output 11,200 pounds A B 17,600 pounds $ 11.00 per pound $ 5.00 per pound $ 17.00 per gallon 2,400 gallons C 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 $50, 340 Selling Price Product A B $71, 170 $15.20 per pound $10.20 per pound $24.20 per gallon C $25,600 Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off 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? point? Complete this question by entering your answers in the tabs below. Required Required 1 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages" as a negative value.) Product Product Product A B Financial advantage (disadvantage) of further processing