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Marlin Manufacturing makes three products from a common input in a joint processing operation. Unit selling prices and total output at the split-off point are

Marlin Manufacturing makes three products from a common input in a joint processing operation. Unit selling prices and total output at the split-off point are as follows:

Product
A B C
Selling Price per unit 18.00 10.00 28.00
Quarterly Output (units) 16,000.00 22,000.00 5,500.00

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 C
Additional Processing Costs 68,000.00 100,000.00 39,000.00
Sales price after processing 22.00 16.00 36.00

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1. What are the incremental revenues from further processing for Product A?

2. What is the financial advantage (disadvantage) of processing Product A further? (In other words, what's the additional net income)

3. What are the incremental revenues from further processing for Product B?

4. What is the financial advantage (disadvantage) of processing Product B further? (In other words, what's the additional net income)

5. What are the incremental revenues from further processing for Product C?

6. What is the financial advantage (disadvantage) of processing Product C further? (In other words, what's the additional net income)

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