Adelphi Company makes two products from a common, joint input Joint processing costs up to the split off point (where the two separate products emerge) 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 Product X Product Y Total Allocated joint processing costs $22,400 $19,600 $42,000 Sales value at split off point $32,000 $28,000 $60,000 Costs of further processing $11,600 $25,300 $36,900 Sales value after further processing $40,800 $54,200 $95,000 a What is the net monetary advantage (disadvantage) of processing Product X beyond the split off point and then selling b What is the net monetary advantage (disadvantage) of processing Product Y beyond the split off point and then selling c What is the minimum amount the company should accept for Product X if it is to be sold at the split off point d What is the minimum amount the company should accept for Product Y if it is to be sold at the split off point

Question: Adelphi Company makes two products from a common, joint input. Joint processing costs up to the split-off point (where the two separate products emerge) total

Adelphi Company makes two products from a common, joint input.
Joint processing costs up to the split-off point (where the two separate products emerge) 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:

	Product X	Product Y	Total
Allocated joint processing costs	$22,400	$19,600	$42,000
Sales value at split-off point	$32,000	$28,000	$60,000
Costs of further processing	$11,600	$25,300	$36,900
Sales value after further processing	$40,800	$54,200	$95,000

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

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

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

d. 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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