Question 44(1 point)

Reference: 12-16

Dowchow Company makes two products from a common input. Joint processing costs up to the split-off point total $38,400 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 XProduct YTotalAllocated Joint Processing Costs20,80017,60038,400Sales Value at Split-Off Point26,00022,00048,000Costs of Further Processing22,60020,40043,000Sales Value after Further Processing45,00045,90090,900

What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?

Question 44 options:

A)

$27,600.

B)

$22,400.

C)

($3,600).

D)

$1,600.