Chapter 13: Applying Excel
Data
Exhibit 13-7 Santa Maria Wool Cooperative
Cost of wool	$165,000
Cost of separation process	$40,000
Sales value of intermediate products at split-off point:
Undyed coarse wool	$119,000
Undyed fine wool	$120,000
Undyed superfine wool	$65,000
Costs of further processing (dyeing) intermediate products:
Undyed coarse wool	$50,000
Undyed fine wool	$60,000
Undyed superfine wool	$10,000
Sales value of end products:
Dyed coarse wool	$157,000
Dyed fine wool	$200,000
Dyed superfine wool	$95,000

c-1. With these new costs and selling prices, what recommendations would you make concerning the companys operations?

c-2. If your recommendation in part (c-1) is followed, what would be the companys overall profit?