Dorsey Company manufactures three products from a common input in a joint processing operation. Joint...
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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $332,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $332,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows Quarterly Output 13,200 pounds 18,900 pounds 2,100 gallons Product Selling Price $16 per pound $7 per pound $26 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Costs $63,900 $81,300 $36,200 Product Selling Price $20 per pound $14 per pound $31 per gallon value 10.00 points Required: (a) Compute the incremental profit (loss) for each product. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response. ProductA Product B Product C Incremental profit (loss)
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