Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $50,500 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 $ 30,300 $ 20,200 $ 50,500

Sales value at split-off point $ 30,000 $ 20,000 $ 50,000

Costs of further processing $ 23,400 $ 17,700 $ 41,100

Sales value after further processing $ 49,000 $ 56,700 $ 105,700

Required:

a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.)

b. What is financial 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?

Help Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $50.500 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 costa Sales value at split-off point Costs of further processing Sales value after further processing $ 30,300 $30,000 $ 23,400 49,000 20,200 s20,000 $ 17,700 $ 50,500 01:30:20 $105,700 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial 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 soid at the split-off point? d. What is the minimum amount the company should accept for Product Y if it is to be soid at the spit-off point? C. Minimum acceptable amount 29 of 29 5