Iaukea Company makes two products from a common input Joint processing costs up to the split off point total $51,300 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 $ 20,000 $ 31,300 $ 51,300 Sales value at split off point $ 24,400 $ 38,400 $ 62,800 Costs of further processing $ 24,500 $ 18,800 $ 43,300 Sales value after further processing $ 48,400 $ 58,900 $ 107,300 A) What is the net monetary advantage (disadvantage) of processing Product X beyond the split off point B) What is the net monetary advantage (disadvantage) of processing Product Y beyond the split off point 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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Question: Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $51,300 a year. The company allocates these

Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $51,300 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	$	20,000	$	31,300	$	51,300
Sales value at split-off point	$	24,400	$	38,400	$	62,800
Costs of further processing	$	24,500	$	18,800	$	43,300
Sales value after further processing	$	48,400	$	58,900	$	107,300

A) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?

B) What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?

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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