Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total \$48,600 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:

Product X Product Y Total

Allocated joint processing costs \$ 18,800 \$ 29,800 \$ 48,600

Sales value at split-off point \$ 25,850 \$ 37,800 \$ 63,650

Costs of further processing \$ 23,300 \$ 17,600 \$ 40,900

Sales value after further processing \$ 48,800 \$ 56,500 \$ 105,300

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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.)

Net \$

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.)

Net \$

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.)

Minimum acceptable amount \$

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.)

Minimum acceptable amount \$

My work for A &B

A) 48800-25850= 22950 – 23300 = -350 Disadvantage

B) 56500 – 37800= 18700 – 17600 = 1100

C) My textbook does not help solve this

D)My textbook does not help solve this

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