Reference no: EM131783931

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $91,000 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:

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:

1. Compute the incremental profit (loss) for each product.

2. Which product or products should be sold at the split-off point? Product A Product B or Product C select all that apply

3. Which product or products should be processed further? Product A Product B or Product C select all that apply