question 6

Exercise 13-7 (Algo) Sell or Process Further Decisions [LO13-7] Dorsey Compony manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $300,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products based on their relative sales value at the split-orf point. Unit seling prices and total output at the split-off point are as follows: Each product can be processed further after the split-off point Additionat processing requires no special facilities. The additional processing costs (per quarten) and unit selling prices after further processing are given below: 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 should be processed further? Complete this question by entering your answers in the tabs below. What is the finandal advontage (disadvantage) of further processing each of the three products beyond the split-off point? Note: Do not round your intermediate calculations. Enter "disadvasnicages" as a negative value