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laci Company makes two products from a common input. Joint processing costs up to the split-off point total $46,000 a year. The company allocates these
laci Company makes two products from a common input. Joint processing costs up to the split-off point total $46,000 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 Total ProductX Allocated joint processing 18,000 28,00046,000 costs 25,450 37,100 62,550 Sales value at split-off point Costs of further processing $ Sales value after further 16,800 $39,300 47,200 54,900, 102,100 processing 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.) Net b. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? (Input the amount as a positive value.) Net c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? 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? Minimum acceptable amount
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