Reference no: EM13597795

Iacollia Company makes two products from a common input. Joint processing costs up to the split-off point total $47,300 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 $ 23,650 $ 23,650 $ 47,300
• Sales value at split-off point $ 34,000 $ 34,000 $ 68,000
• Costs of further processing $ 21,600 $ 21,300 $ 42,900
• Sales value after further processing $ 53,500 $ 60,300 $ 113,800

Required:
a.What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? (Input the amount as positive value. Omit the "$" sign in your response.)

Net advantage (disadvantage) $
b.What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? (Input the amount as positive value. Omit the "$" sign in your response.)