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Exercise 12-7 Sell or Process Further Decisions (LO12-7) Dorsey Company manufactures three products from a common input in aComplete this question by entering your answers in the tabs below. Required 1 Required 2 Based on your analysis in requiremen

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Answer #1

a) Incremental analysis

product A Product B Product C
Selling price after further processing 25.10 20.10 34.10
Selling price at split off 20 14 26
Incremental price 5.10 6.10 8.10
Quantity 13000 20300 4200
Incremental revenue 66300 123830 34020
Incremental cost -70950 -101905 -43780
Financial advantage (disadvantage) -4650 21925 -9760

Analysis

Product A Product B Product C
Sell at split off Yes No Yes
Process further No Yes No
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