Cf ezto.mheducation.com/hm.tpx?-0.8733667374242997.1461199393463 ps Apple a Amaz

Question

Cf ezto.mheducation.com/hm.tpx?-0.8733667374242997.1461199393463 ps Apple a Amazon Hotmail G Google n Facebook 0 YouTube NNetflixKickass eOce Apple Amazon Hotmail G Googlef Facebook YouTube N Netflix Kickass Oce Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $95,000 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: Selling Price 3 per pound 17,000 pounds $ 4 per pound 22,000 pounds $ 10 per gallon 6,000 gallions Each product can be processed further after the splt-off point. Additional processing requires no special facilities. T given below The aditional processing costs (per quarter) and unit selling prices after further processing are Additional g CostsSelling Price $39,000 37,000 $ 10,000 S 5 per pound S 7 per pound $ 13 per gallon Required a. Compute the incremental profit (loss) for each product Product A Product B Product c Seling price after further processing Seling price at the split-off point Incremental revenue per pound or gallon Total quarterly output in pounds or gallons Total incremental revenue Total incremental processing costs Total incremental profit or loss 2

Explanation / Answer

a) Computation of Incrmental profit or (Loss) for each product:

b) Product :A

c) Product :B & Product C

Product-A Product-B Product-C Selling price after further processing ($) 5 7 13 Selling price at the Split-off point ($) 3 4 10 Incremental Revenue per pound or gallon ($) 2 3 3 Total quarterly output in Pounds or Gallons 17,000 22,000 6,000 Total incremental Revenu ($) 34,000 66,000 18,000 Total incremental Processing cost ($) 39,000 37,000 10,000 Total incremental Profit or ( Loss) (5,000) 29,000 8,000

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