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Moyar Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year. The company allocates
Moyar Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 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 Product Y Total 16,800 $14,000 16,800 33,600 $24,000 $38,000 $15,000 $35,500 $45,100 $80,600 $18,700 $33,700 What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point? $9,600 $33,600 $6,500 $20,500
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