Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,500 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	$ 28,500	$ 19,000	$ 47,500
Sales value at split-off point	$ 30,000	$ 20,000	$ 50,000
Costs of further processing	$ 24,600	$ 18,900	$ 43,500
Sales value after further processing	$ 48,600	$ 59,100	$ 107,700

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?

a.
b.
c.	Minimum Acceptable Amount
d.	Minimum Acceptable Amount