Sell or Process Further Decisions
Dorsey Company manufactures three products from a common input in a joint processing operation Joint
Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and imit selling prices after further processing are given below:
Required:
What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-oil point
2. Based on analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further?
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