Chapter 11, Problem 2AE

The Excel worksheet form that appears below is to be used to recreate the example in the text related to Santa Maria Wool Cooperative. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.

You should proceed to the requirements below only after completing your worksheet.

Required:

2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile, Change the data area of vow worksheet to match the following:

1. That is the overall profit if all intermediate products e processed into final products?
2. What is the financial advantage (disadvantage) from further processing each of the intermediate products?
3. With these new costs and selling prices, what recommendations would you make concerning the company’s operations? If your recommendation is followed. What should be the overall profit of the company?