ID: 11666300

Problem Data Joint Costs $90,000 Product Product A Product B Product C Units produced 5,000 3,000 4,000 Selling price at split off $25 $10 $15 Selling price after further processing $50 $40 $25 Additional processing costs $150,000 $45,000 *Input last 5 digits of student ID in yellow highlighted cell REQUIRED 1 Complete the chart below (example on page 535 of text) to illustrate the financial advantage or disadvantage of further processing of each product. Be sure disadvantages appear as negative nunbers. Product A Product B Product C Total Sales value after further processing Less sales value at split off Incremental revenue from further processing Less cost of further processing Financial advantage (disadvantage) of further processing 2 (1 POINT) Based on your chart in question 1, which of the product(s) should be sold at the split off point and which processed further? Sold at split off Processed further Product A Product B Product C 3 Complete the schedule provided to compute the total profit earned if units are sold as indicated by your answer to question 2 (6 POINTS) Total Sales Total joint costs Total further processing costs Profit 1. Complete chart provided (similar to the example in the text on page 535) to illustrate the financial advantage or disadvantage of further processing of each product (be sure disadvantages appear as negative numbers). (3 points) 2. Based on the chart in question #1 which product(s) should be sold at split-off and which processed further? (1 point) 3. Complete the schedule provided to compute the total profits earned if units are sold as indicated by your answer to question #2. (6 points) Excelsior Company manufactures three products in a joint process that costs $90,000. Initial processing results in the following number of units of each product: Product A 5,000 units Product B 3,000 units Product C 4,000 units At the initial split off point the products can be sold for the prices below: Product A $25 per unit Product B $10 per unit Product C $15 per unit Instead of selling the products at split off, Excelsior could spend an additional $150,000 to process Product A further, which would result in a new sales price for Product A of $50 per unit. Excelsior could also process Product B further at a cost of $45,000, which would result in a new sales price for Product B of $40 per unit and could process Product C further at a cost of (use the last five digits of your student ID for the cost of further processing Product C), resulting in a new sales price for Product C of $25 per unit