2. In industries that process joint products, the costs of theraw materials inputs and the sales values of intermediate and finalproducts are often volatile. Change the data area of your worksheetto match the following:

A B

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Chapter 6: Applying Excel Data Exhibit 6-7 Santa Maria WoolCooperative Cost of wool $233,000 Cost of separation process $40,000 Sales value of intermediate products atsplit-off point: Undyed coarse wool $132,000 Undyed fine wool $148,000 Undyed superfine wool $70,000 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 $158,000 Dyed fine wool $190,000 Dyed superfine wool $86,000

If your formulas are correct, you should get the correct answersto the following questions.

a. What is the overall profit if all intermediate products areprocessed into final products?

	Overall profit from processing allintermediate products

b. What is the financial advantage (disadvantage) from furtherprocessing?

	from further processing undyed coarsewool from further processing undyed finewool from further processing undyedsuperfine wool

c-1. With these new costs and selling prices, whatrecommendations would you make concerning the company’soperations?

Sell as is or process further the intermediate productundyed coarse wool?

Sell as is or process further the intermediate productundyed fine wool?

Sell as is or process further the intermediate productundyed superfine wool?

c-2. If your recommendation in part (c-1) is followed, whatwould be the company’s overall profit?

	Overall profit from following the planin part (c)