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Dowchow Corporation makes two products from a common Input. Joint processing costs up to the spilt-off point total $38.400 a year. The company allocates these
Dowchow Corporation makes two products from a common Input. Joint processing costs up to the spilt-off point total $38.400 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $20.800 $17,600 $38.400 Sales value at split-off point $26.000 $22.000 $48.000 Costs of further processing $18,600 $20,400 $39.000 Sales value after further processing $45.000 $45,900 $90.900 What is the net monetary value of processing Product X beyond the split-off point? $19.000 $400 $3.500 $7.900
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