Final answer:
In industries that process joint products, the costs of raw material inputs and the sales values of intermediate and final products can be volatile. Updating the data area in a worksheet allows for the correct calculation of overall profit, financial advantage (disadvantage) from further processing, and recommendations regarding company operations.
Step-by-step explanation:
In industries that process joint products, the costs of raw material inputs and the sales values of intermediate and final products can be volatile. To match the new data area in your worksheet, you need to update the costs of the raw materials and selling prices of the products. Once you have done this, you can use the updated data to answer the following questions:
a. What is the overall profit if all intermediate products are processed into final products?
To calculate the overall profit, subtract the total cost from the total revenue. The total cost is the sum of the costs of raw material inputs and the total revenue is the sum of the sales values of the final products.
b. What is the financial advantage (disadvantage) from further processing?
To determine the financial advantage or disadvantage from further processing, compare the profit from processing the intermediate products into final products with the profit from selling the intermediate products as they are.
c-1. With these new costs and selling prices, what recommendations would you make concerning the company’s operations?
Based on the new costs and selling prices, you can make recommendations to optimize the company's operations. For example, if the costs of raw materials have increased significantly, it may be more profitable to focus on processing the intermediate products into final products.