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Product A Selling Price $ 24.00 per pound Quarterly Output B $ 18.00 per pound 13,800 pounds 21,500 pounds $ 30.00 per gallon 5,000
Product A Selling Price $ 24.00 per pound Quarterly Output B $ 18.00 per pound 13,800 pounds 21,500 pounds $ 30.00 per gallon 5,000 gallons 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 Additional Processing Costs $ 81,150 $ 117,125 Selling Price $29.50 per pound $ 24.50 per pound $ 52,900 $ 38.50 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages" as a negative value.) Product A Product B Financial advantage (disadvantage) of further processing $ Product C 407,100 $ 526,750 $ 192,500
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