1 Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 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 below: 2 3 4 5 Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $25,200 $20,000 $22,800 $47,800 Product Y $16,800 $30,000 $17,100 $55,500 Total $42,000 $50,000 $39,900 $103,300 Required: 1. Determine which product(s) should be sold at the split-off point and which product(s) should be processed further. (4 marks) Product X Product Y Decision Determine which product(s) should be sold at the split off point and which product(s) should be processed further. (4 marks) Product X Product Y Decision 20 2 Based on the result from part 1, how much revenue in total will Ibsen Company earn? (1 mark) 2 Total revenue Sheet1 New