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is this correct Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $52,000 a year. The
is this correct
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $52,000 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: Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $ 20,800 $20,000 $23,100 38,400 Product Y $ 31,200 $30,000 $ 17,400 $56,100 Total $52,000 $50,000 $40,500 $94,500 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? C. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? a. Financial advantage b. Financial disadvantage C. Minimum acceptable amount$ d. Minimum acceptable amount$ 1,200 (100) 9,600 8,400Step by Step Solution
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