Question: Task Five (Sell or Further Process) Tbsen Company makes two products from a common input. Joint processing costs up to the split- off point total
Task Five (Sell or Further Process) Tbsen 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 on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point of 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 X Product Y Total $25,600 S17,600 $43,200 $32,000 $22,000 S54,000 S15.900 $17.400 $33,300 S47,500 S40,800 $88,300 Required: What is financial advantage (disadvantage) of processing Product X beyond the split-off point? 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 Xif 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 plut-off point? %
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