Business, 25.10.2019 02:43 laidbackkiddo412

Dorsey company manufactures three products from a common input in a joint processing operation. joint processing costs up to the split-off point total $97,000 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: product selling price quarterlyoutputa $ 3 per pound 16,000 poundsb $ 4 per pound 21,000 poundsc $ 16 per gallon 4,000 gallons 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: product additionalprocessing costs selling pricea $ 40,000 $ 5per poundb $ 36,000 $ 7 per poundc $ 11,000 $ 21 per gallon required: compute the incremental profit (loss) for each product. product a product b product cselling price after further processing ? ? ? selling price at the split-off point ? ? ? incremental revenue per pound or gallon ? ? ? total quartely output in pounds or gallons ? ? ? total incremental revenue ? ? ? total incremental processing costs ? ? ? total incremental profit or loss ? ? ?

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