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IPS operates a factory which produces the MiniY and the MiniX. During September 20X8, the factory produced 500 units of MiniY and 600 units of MiniX. The joint cost related to the operation was $3,000,000. MiniX sells for $3,500 per unit and MiniY sells for $3,800 per unit. Allocate the joint costs (production cost allocation) using the relative sales values of MiniY and MiniX. You hope you can prove that the MiniX is profitable, but you also recognize that numbers don't lie!
Question: With the costs that you calculate, what is the profit or loss associated with MiniX?
Before starting your calculations, review the materials on integrating accounting and financial information.
Submit your Profit or Loss Report and Calculations to the dropbox below. Be sure to show your calculations in Excel and provide a narrative analysis in PowerPoint. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of the company.
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