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TB Problem Qu. 12-203 lbsen Company makes two products from a common... Ibsen Company makes two products from a common input. Joint processing costs up
TB Problem Qu. 12-203 lbsen Company makes two products from a common... Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $49,000 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 belovw: Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $19,600 $20,000 $24,900 $39,200 Product Y $29,400 $30,000 19,200 $59,700 Total 49,000 50,000 44,100 98,900 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? 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? c. Minimum acceptable amount d. Minimum acceptable amount
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