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If your recommendation in part (c-1) is followed, what would be the companys overall profit? Chapter 6: Applying Excel Data Exhibit 6-7 Santa Maria Wool

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

Chapter 6: Applying Excel Data Exhibit 6-7 Santa Maria Wool Cooperative $183,000 Cost of wool Cost of separation process Sales value of intermediate products at split-off point $40,000 $129,000 Undyed coarse wool Undyed fine wool Undyed superfine wool Costs of further processing (dyeing) intermediate products:| Undyed coarse wool $174,000 $59,000 $50,000 Undyed fine wool Undyed superfine wool Sales value of end products: $60,000 $10,000 $164,000 Dyed coarse wool Dyed fine wool Dyed superfine wool $213,000 $96,000 Enter a formula into each of the cells marked with a ? below Example: Joint Product Costs and the Contribution Approach Analysis of the profitability of the overall operation: $ 473,000 Combined final sales value Less costs of producing the end products: Cost of wool Cost of separation process Combined costs of dyeing $183,000 $40,000 $120,000 343,000 $130,000 Profit Analysis of sell or process further: Coarse Fine Superfine Wool Wool Wool Final sales value after further processing Less sales value at the split-off point Incremental revenue from further processing Less cost of further processing (dyeing) $164,000 $213,000 $96,000 $129,000 $174,000 $59,000 $37,000 $35,000 $39,000 $50,000 $15,000 $60,000 $10,000 -$21,000 $27,000 Financial advantage (disadvantage) of further processing c-1. With these new costs and selling prices, what recommendations would you make concerning the company's operations? Answer is complete and correct Sell as is Sell as is or process further the intermediate product undyed coarse wool? Sell as is Sell as is or process further the intermediate product undyed fine wool? Process further Sell as is or process further the intermediate product undyed superfine wool? c-2. If your recommendation in part (c-1) is followed, what would be the company's overall profit? Answer is not complete. Overall profit from following the plan in part (c)

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