33. Two products, QI and VH, emerge from a joint process. Product QI has been allocated $13,300 of the total joint costs of $34,000. A total of 2,000 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $12 per unit, or it can be processed further for an additional total cost of $10,000 and then sold for $15 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?

Multiple Choice

• $(6,000)

• $(4,000)

• $(7,000)

• $(5,000)

35. Gallerani Corporation has received a request for a special order of 4,100 units of product A90 for $26.70 each. Product A90's unit product cost is $26.00, determined as follows:

Direct materials	$ 2.45
Direct labor	7.75
Variable manufacturing overhead	6.85
Fixed manufacturing overhead	8.95
Unit product cost	$ 26.00

Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $3.10 per unit and that would require an investment of $18,500 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:

Multiple Choice

• $6,855

• $7,845

• $8,355

• $8,870