Ibsen Company makes two products from a common input. Joint processing costs up to the split$-$off point total $$43,000$ 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:

Allocated joint processing costs

Sales value at split$-$off point

Costs of further processing

Sales value after further processing

Product $Y$

$$17,200$

$$20,000$

$$17,300$

$$55,900$

Total

$$43,000$

$$50,000$

$$40,300$

$$104,100$

Required:

a$.$ What is financial advantage $($disadvantage$)$ of processing Product $x$ beyond the split$-$off point?

Note: 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?