Question: 5. makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a 5 year The company allocates these
makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a 5 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 Product Y Total Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing 16,800 16,800 33,60e $24,000 $24,000 $48,000 $15,e00 $18,700 $33,700 35,500 $45,100 $80,600 What is the financial advantage (disadvantage) for the company of processing Product Y beyond the split-off point
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