Product Selling Price Assignment

Product Selling Price Assignment

Dorsey Com tures three products from a common input in a joint processing operation. Joint p relative sales value at the split-off point Unt selling prices and total output at the spilled-oft point areas foo cessing 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 Product Selling Price $ 3 per pound Quarterly Output 17,000 pounds A E nec allon 7.000 gallons Each product can be processed further after the split-ott point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below Additional Product Processing Selling Price S 7 par pound 12 per gallon 39.000 17,000 Required: Compute the incremental profit (loss) for each product.

Product A Product B Product C Selling price after further processing Selling 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.

Product Selling Price Assignment

Product Selling Price Assignment

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