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Iaukea Company makes two products from a common input. Joint processing costs up to the split off point total $48,700 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 | $ | 18,900 | $ | 29,800 | $ | 48,700 |
| Sales value at split off point | $ | 25,900 | $ | 37,850 | $ | 63,750 |
| Costs of further processing | $ | 23,400 | $ | 17,700 | $ | 41,100 |
| Sales value after further processing | $ | 49,000 | $ | 56,700 | $ | 105,700 |
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Required: |
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| 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 (Click to select) disadvantage advantage | $ |
| 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 (Click to select) disadvantage advantage | $ |
| 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 | $ |
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