5 1 points Exercise 13-7 (Algo) Sell or Process Further Decisions [LO13-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $325,000 per quarter. For financial reporting purposes, 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: Product Selling Price $ 15.00 per pound ebook A Quarterly Output 12,000 pounds HIE B $9.00 per pound 18,000 pounds c $ 21.00 per gallon 3,200 gallons References 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: Additional Processing Costs $59,100 Product A B C $ 84,230 $33,280 Required: Selling Price $ 19.60 per pound $14.60 per pound $ 28.60 per gallon 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? LO 5 Processing Product A Costs $59,100 Selling Price $ 19.60 per pound $ 84,230 $ 14.60 per pound C $ 33,200 $28.60 per gallon 1 points eflook 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? References 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.) Financial advantage (disadvantage) of further processing Product A Product B Product C Required? > 5 Product B Processing Costs $59,100 $ 84,230 Selling Price $ 19.60 per pound $ 14.60 per pound $ 33,280 $ 28.60 per gallon 1 points eBook Hent References 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 Product C Required 2 Based on your analysit ment 1, which product or products should be sold at the split-off point and which product or products should be processed further? Product A Product B Sell at spit-off point? Process further? 4 Exercise 13-12 (Algo) Volume Trade-Off Decisions [LO13-5] 2 Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): points Product Selling price $90.00 $60.00 $80.00 Variable expenses: References Direct materials 27.00 18.00 9.00 Other variable expenses 27.00 27.00 47.00 fetal variable expenses 54.00 45.00 Contribution margin $36.00 $15.00 $24.00 Contribution margin ratio 40% 25% 30% The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B. or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Contribution margin ratio 40% 25% 30% Book rences The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 2 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal places.) Product A Product B Product C Contribution margin per pound of the constraining resource Required? 4 Contribution margin Contribution margin ratio 36. 315. 24. 40% 25% 30% 2 points eBook References The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which orders would you advise the company to accept first, those for A, B, or C7 Which orders second? Third? Product A Product B Product C < Required 1 Required 3> 4 Contribution margin Contribution margin ratio. 336.00 $15.00 >24.000 40% 25% 30% 2 points eBook References The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can eam per month if it makes optimal use of its 5.400 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin < Required 2 Required E