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Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 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 Total Allocated joint processing costs $ 25,200 $ 16,800 $ 42,600 Sales value at split-off point $ 30,000 $ 20,000 $50,000 costs of further processing $ 22,800 $ 17, 100 $ 39,900 Sales value after further processing $ 47,Bee $ 55,500 $ 103,300 Required: a. What is financial advantage (disadvantage of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c What is the minimum amount the company should accept for Product X if it is to be sold at the split off point? d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? a Financial disadvantage Financial advantage C Minimum acceptable amount d. Minimum acceptable amount
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