Reference no: EM131792161

Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $47,000 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	$	18,400	$	28,600	$	47,000
Sales value at split-off point	$	25,650	$	37,400	$	63,050
Costs of further processing	$	22,900	$	17,200	$	40,100
Sales value after further processing	$	48,000	$	55,700	$	103,700

Required:

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

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

c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? (Omit the "$" sign in your response.)

d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? (Omit the "$" sign in your response.)