Warranty Processing Number 866-942-3551 nternet Explores Exam #4(Chs 1012) 150 p
ID: 2411188 • Letter: W
Question
Warranty Processing Number 866-942-3551 nternet Explores Exam #4(Chs 1012) 150 pts Due June 160 Help Save&Exit; Submit TB Problem Qu. 12-203 lbsen Company makes two products from a common. 5 lbsen Company makes two products from a common input. Joint processing costs up to The company allocates these costs to the joint products on the basis of ther the split off point total $47,000 a year 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 528,200 Allocated joint processing costa 18,800 20,000 24,500 38,400 547,000 Sales value at split-ott point 18,500 Costs of further processing Sales value after further processing $43, 300 $97,300 $58,900 Required indicated tr a ma of arocesing Prodact X beyond the splt fpont Nlegetive amount ehoud b by o minus sign b. What i d. What is the minimum amount the s financial advantage (dsadventage) of processing Product Y beyond the spilt-off poine? is the minimum amount the company should accept for Product X if t is to be sold at the split-off point? company should accept for Product Y it it is to be sold at the split off point? c Minimum acceptable amount d Mnimum acceptable amount paper cipExplanation / Answer
Financial Advantage of further processing Product X Product Y Sales value after further processing 38400 58900 Less: sales value at split off point 20000 30000 Incremental sales revenue 18400 28900 Less: Cost of Further processing 24500 18800 Incremental income/ (loss) -6100 10100 Req a: Net Financial disadvantage of further processing of product X: ($ 6100) Req b: Net Financial advantage of Further processing of Product Y: $ 10100 Req c: Total Joint cost: $ 47000 Allocated to product Product X 18800 Product Y 28200 Min Amount of Product X at which it is to be sold at split off: Product X: 18800 Rreq d: Min amount of Pproduct Y at which it is to be sold at splitt of: Product Y: 28200
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