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Safari File Edit View History Bookmarks Window Help # A z ( S % Thu 2:37 PM Lynette Disla C E blackboard.pace.edu PACE UNIVERSITY Lynette Disla My Resource Page Courses Community ePortfolioBookstore Library Help QUESTION 6 10 points Save Answer Dodrill Company makes two products from a common input. Joint processing costs up to the split-off point total S43,200 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 Sales value at split-off point Costs of further processing Sales value after further processing $19,800 .. S22,000 $25,400 ..$52,200 $23,400 S26,000 $16,400 $38,200 $43,200 S48,000 $41,800 $90,400 What is the impact on company profit by processing Product Y beyond the split-off point? O a. Ob. $(4,200) a. Correct answer not listed c. $(1,600) d. $21,800 e. $24,400 QUESTION 7 10 points Save Answer a Disla DEC oc.docx 17 3D

Explanation / Answer

If the company process Product Y further them the profits of the company will be

So the correct option is C. $ (1,600) i.e. if company Further process product Y , It will give a Loss of $ 1,600

Particulars Amount Total Sale Value after split off 38,200 Less : Allocated expenses til Split off (A) (23,400) Less Further Cost after Split off (B) (16,400) Total Cost of Product Y (A+B) (39,800) Net Profit / ( LossI (1,600)

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