x
Info
x
Warning
x
Danger
 / 
 / 
 / 
Chapter 7-3 Dorsey Company manufactures three products

Question : Chapter 7-3 Dorsey Company manufactures three products : 3175

Chapter 7-3

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $90,000 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:

Required:

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

b. Which product or products should be sold at the split-off point? (You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.)

c. Which product or products should be processed further? (You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.)

Product

Selling Price

Quarterly Output

A

$

5

per pound

12,000

pounds

B

$

6

per pound

17,000

pounds

C

$

9

per gallon

7,000

gallons

           

 

Solution
5 (1 Ratings )

Solved
Supply Chain Management 1 Year Ago 182 Views
This Question has Been Answered!

Related Answers
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
13211 Supply Chain Management Questions Answered!
Post a Question