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Product X and Y are made from a common input. Joint processing costs up to the split-off point total $50,100 a year. The company allocates
Product X and Y are made from a common input. Joint processing costs up to the split-off point total $50,100 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 $ 19,600 24,200 s 24,100 47,600 Product Y $30,500 $38,200 $ 18,400 $ 58,100 Total $50,100 62,400 42,500 $105,700 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? (Negative amount should be indicated by a minus sign.)
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