If your formulas are correct, you should get the correct answers to the following questions.

a. What is the overall profit if all intermediate products are processed into final products?

b. What is the financial advantage (disadvantage) from further processing?

c-1. With these new costs and selling prices, what recommendations would you make concerning the companys operations?

c-2. If your recommendation in part (c-1) is followed, what would be the companys overall profit?

2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following 1 Chapter 12: Applying Excel 2 3 Data 4 Exhibit 12-7 Santa Maria Wool Cooperative 5 Cost of wool 6 Cost of separation process 7 Sales value of intermediate products at split-off point: 8 9 Undyed fine wool 10 Undyed superfine wool 11 Costs of further processing (dyeing) intermediate products $ 247,000 $ 40,000 $119,000 $132,000 $ 78,000 Undyed coarse wool 1Undyed coarse wool $ 50,000 $60,000 10,000 12 13 Undyed fine wool 14 Undyed superfine wool Sales value of end products 15 16 Dyed coarse wool 17 Dyed fine wool 18 Dyed superfine wool $153,000 $230,000 $ 91,000