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There are only 10,000 DLH but unlimited amount of MH. How many units of Product Y should the company make? Products X Y Demand in

There are only 10,000 DLH but unlimited amount of MH. How many units of Product Y should the company make? Products X Y Demand in units 2,200 1,000 CM/unit $36 $48 DLH/unit 4 8 MH/ unit 8 6 Your 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 X Product Y Total Allocated joint processing costs Sales value at split-off point......... $ 20,800 $ 17,600 $38,400 $ 26,000 $ 22,000 $48,000 Costs of further processing. $ 22,600 $ 20,400 $43,000 Sales value after further processing... $ 45,000 $ 45,900 $90,900 What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? Your Company can manufacture 300,000 units a year at a variable cost of $750,000 and a fixed cost of $450,000. Next year, 240,000 units will be sold at the regular price of $5.00 each. A special order was placed for 60,000 units to be sold at a 40% discount off the regular price. What is the change in net income if Your Company accepts the special order? Your Company has some material that originally cost $73,500. The material has a scrap value of $45,600 as is, but if reworked at a cost of $6,600, it could be sold for $58,100. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap? Hint: first decide which of the five problems this fits into. SV

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