Xyz corporation makes two products from a common input

Reference no: EM13612987

XYZ Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 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: Allocated joint processing costs Product X: $19,600 Product Y: $14,000 Sales value at split-off point Product X: $28,000 Product Y: $20,000 Costs of further processing Product X: $22,400 Product Y: $15,700 Sales value after further processing Product X: $53,500 Product Y: $33,500

Required:

a. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?

b. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?

Reference no: EM13612987

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