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Weston Company makes two products from a common input. Joint processing costs up to the split-off point total $49,600 a year. The company allocates these

Weston Company makes two products from a common input. Joint processing costs up to the split-off point total $49,600 a year. The company allocates these costs to the joint product 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 $19,200 $30,400 $49,600
Sales value at split-off point $24,000 $38,000 $62,000
Cost of further processing $23,700 $18,000 $41,700
Sales value after further processing $46,800 $57,300 $104,100

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

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

3. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?

4. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?

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