Iaukea Company makes two products from a common input. Joint processing costs up

Question

Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $48,700 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:

Required:

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.)

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.)

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.)

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.)

Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $48,700 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:

Explanation / Answer

A)disadvantage by $300

B)Advantage by 1150

C) Minimum acceptable amount is $25600

D)Minimum acceptable amount is $39000

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