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Question 3 Company makes two products from a common input. Joint processing costs up to the split-off point total $48,000 a year. The company allocates
Question 3 Company makes two products from a common input. Joint processing costs up to the split-off point total $48,000 a year. The company allocates these cost 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 Y Total costs Product X $19,200 $28,800 $48,000 $20,000 Allocated joint processing cost Sales value at split-off point Costs of further processing Sales value after further processing $30,000 $19,000 $59,300 $50,000 $43,700 $98,100 $38,800 A. What is the financial advantage (disadvantage of purchasing product X beyond the split-off point? B. What is the financial advantage (disadvantage) of purchasing 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? ? ? Minimum acceptable amount Minimum acceptable amount
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