Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $48,600 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 $ 18,800 $ 29,800 $ 48,600
Sales value at split-off point $ 25,850 $ 37,800 $ 63,650
Costs of further processing $ 23,300 $ 17,600 $ 40,900
Sales value after further processing $ 48,800 $ 56,500 $ 105,300
Required:
a.
What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? (Input the amount as a positive value. Omit the “$” sign in your response.)
Net $
b.
What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? (Input the amount as a positive value. Omit the “$” sign in your response.)
Net $
c.
What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? (Omit the “$” sign in your response.)
Minimum acceptable amount $
d.
What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? (Omit the “$” sign in your response.)
Minimum acceptable amount $
My work for A &B
A) 48800-25850= 22950 – 23300 = -350 Disadvantage
B) 56500 – 37800= 18700 – 17600 = 1100
C) My textbook does not help solve this
D)My textbook does not help solve this