Question: Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these
Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 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 Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product Product X Y $16,800 $16,800 $33,600 $24,000 $24,000 $48,000 Total $15,000 $18,700 $33,700 $35,500 $45,100 $80,600 What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point? Multiple Choice O ($3.500 $27700 $20.500 $3.700
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