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Please complete all Exercise 12-7 Sell or Process Further [LO12-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint
Please complete all
Exercise 12-7 Sell or Process Further [LO12-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $99,000 per quarter. 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 Quarterly Output 11,000 pounds 16,000 pounds 6,000 gallons Product Selling Price S 5 per pound S 6 per pound $ 10 per gallon Each product can be process facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: ed further after the split-off poin t. Additional processing requires no special Additional Processing Costs $ 35,000 $ 38,000 $ 12,000 Product Selling Price $ 7 per pound $ 10 per pound $ 13 per gallon Required a. Compute the incremental profit (loss) for each product. Product A Product B Product C Selling price after further processing Selling price at the split-off point Incremental revenue per pound or gallon Total quarterly output in pounds or gallons Total incremental revenue Total in Total incremental profit or loss cremental processing costs 0 $ 0 $%
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