Chapter 11: Applying Excel Data Exhibit 11-7 Santa Maria Wool Cooperative \begin{tabular}{|l|r|} \hline Cost of wool & $200,000 \\ \hline Cost of separation process & $40,000 \\ \hline Sales value of intermediate products at split-off point: & \\ \hline Undyed coarse wool & $120,000 \\ \hline Undyed fine wool & $150,000 \\ \hline Undyed superfine wool & $60,000 \\ \hline Costs of further processing (dyeing) intermediate products: & \\ \hline Undyed coarse wool & $50,000 \\ \hline Undyed fine wool & $60,000 \\ \hline Undyed superfine wool & $10,000 \\ \hline Sales value of end products: & $160,000 \\ \hline Dyed coarse wool & $240,000 \\ \hline Dyed fine wool & $90,000 \\ \hline Dyed superfine wool & \\ \hline \end{tabular} Enter a formula into each of the cells marked with a ? below Example: Joint Product Costs and the Contribution Approach Analysis of the profitability of the overall operation: Combined final sales value Less costs of producing the end products: Cost of wool Cost of separation process Combined costs of dyeing Profit \begin{tabular}{|r|r|} \hline & $490,000 \\ \hline$200,000 & \\ \hline$40,000 & \\ \hline$120,000 & 360,000 \\ \hline & $130,000 \\ \hline \hline \end{tabular} Analysis of sell or process further: Final sales value after further processing Less sales value at the split-off point Incremental revenue from further processing Less cost of further processing (dyeing) Financial advantage (disadvantage) of further processing \begin{tabular}{|r|r|r|} \hline \multicolumn{1}{|c|}{ Coarse } & \multicolumn{1}{|c|}{ Fine } & \multicolumn{1}{|c|}{ Superfine } \\ \hline Wool & \multicolumn{1}{|c|}{ Wool } & \multicolumn{1}{|c|}{ Wool } \\ \hline$160,000 & $240,000 & $90,000 \\ \hline$50,000 & $60,000 & $60,000 \\ \hline$110,000 & $180,000 & $30,000 \\ \hline$50,000 & $60,000 & $10,000 \\ \hline$160,000 & $240,000 & $20,000 \\ \hline \hline & & \\ \hline \end{tabular} 2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following: If your formulas are correct, you should get the correct answers to the following questions. a. What is the overall profit if all intermediate products are processed into final products? b. What is the financial advantage (disadvantage) from further processing? c-1. With these new costs and selling prices, what recommendations would you make concerning the company's operations? c-2. If your recommendation in part (c-1) is followed, what would be the company's overall profit