Question: Problem 4: (3 points each, 12 points) Processing Further XYZ Company produces three products (A, B, and C) from a common input in a joint

 Problem 4: (3 points each, 12 points) Processing Further XYZ Company

Problem 4: (3 points each, 12 points) Processing Further XYZ Company produces three products (A, B, and C) from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial statement purposes, these joint processing costs are split based on their relative sales value at the split-off point. Additional processing requires no special facilities. Additional information is presented below: Product A B Sales Price Before Split-off $ 16 per pound $ 8 per pound $ 25 per gallon Quarterly Output 15,000 lbs 20,000 lbs 4,000 gal Sales Price After Split-off $ 20 per pound $ 13 per pound $ 32 per gallon Additional Processing Costs $ 63,000 $ 80,000 $36,000 Required: 1. What is the advantage or disadvantage of further processing each of the three products beyond the split-off point? (Show a disadvantage in brackets.) Work: Answer 1-Product A: Answer 1-Product B: Answer 1-Product C: 2. Given your work in Part 1, which product(s) should be sold at split-off? Answer 2

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