Question: Prevost Manufacturing makes two products from a common input. Joint processing costs up to the split-off point total $38,400 a year. The company allocates these

Prevost Manufacturing makes two products from a common input. Joint processing costs up to the split-off point total $38,400 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. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?

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