Question
Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $49,700 a year. The company allocates these
Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $49,700 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 $ 19,300 $ 30,400 $ 49,700 Sales value at split-off point $ 24,050 $ 38,050 $ 62,100 Costs of further processing $ 23,800 $ 18,100 $ 41,900 Sales value after further processing $ 47,000 $ 57,500 $ 104,500 Required: a. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? (Input the amount as a positive value. Omit the "$" sign in your response.) Net $ 22950 b. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? (Input the amount as a positive value. Omit the "$" sign in your response.) Net $ -23800 c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? (Omit the "$" sign in your response.) Minimum acceptable amount $ d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? (Omit the "$" sign in your response.) Minimum acceptable amount $
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