Question: Giovanni Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 a year. The company allocates

Giovanni Company makes two products from a common input. Joint processing costs

Giovanni Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 a year. The company allocates these costs to the joint products based on 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 Sales value at the split-off point Costs of further processing Sales value after further processing $ 25,600 $ 32,000 $ 15,900 $ 47,500 $ 17,600 $ 22,000 $ 17,400 $ 40,800 $ 43,200 $ 54,000 $ 33,300 $ 88,300 Required: a. What is the financial advantage (disadvantage) of processing Product X beyond the split-off point? b. What is the 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?

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