rential Analynis $(3)$

Exercise $11-7($Algo$)$ Sell or Process Further Decisions $[$LO$11-7]$

Dorsey Company manufactures three products from a cormon input in a jaint processing operstion. Joint processing costs up to the splete$-$off point sotal $$300,000$ per quarter. For fluancial reporting purposes, the company allocates these costs to the joint products based on their relative sales value at the spit$-$off point. Unit selling prices and sotal output at the split$-$off point are as follows:

$\backslash$table$[[$Product$,$Selling Price,Quarterly output$],[$A$,3$ tev.ee$,$per pound,$11,400,$peunds$],[8,54\mathrm{.}10,$per pound,$17,389,$pounds$],[$C$,516\mathrm{.}04,$per gallen,,$2,20$e gallons$]]$

Exch product cen be processed further after the split off point, Adstional processing requires no special facilities. The additional processing costs $($per quaner$)$ and unt selling prices after further processing are given befor:

$\backslash$table$[[\backslash$table$[[$Mdditionat$],[$Prodoct$],[$Proctsising Coits$],[$Setting Price$]]],[$A$,$$$44,234,$$ $14\mathrm{.}10$ ptr Blust$],[8,$$ $84,455,$$ $9\mathrm{.}1$e per plusd$],[,$$ $23,700,$$$23\mathrm{.}10$ per gettan$]]$

Required:

What is the financial advantage $($disadvantage$)$ of further processing each of the llree products beyond the spit off point?

Based on your andipls in requirement $1,$ which product or products should be suld at the spitt$-$off point and which should be processed further?

Complete this questien by entering your anwwers in the tabs belew.

Required : $1$

What is the financlai advantapt $($diadvartage$)$ of further processing such of the three products bepand the self$-$eff poine?

$\backslash$table$[[,$Probictin,Pribuer C$],[,,],[$tompa$,,]]$

Ber

$6$ at $7$

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