Business, 31.03.2020 00:22 kmetz07

Dock 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: Product X Product Y Total Allocated joint processing costs $ 16,800 $ 16,800 $ 33,600 Sales value at split-off point $ 24,000 $ 24,000 $ 48,000 Costs of further processing $ 15,000 $ 18,700 $ 33,700 Sales value after further processing $ 35,500 $ 45,100 $ 80,600 What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point?

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Dock Corporation makes two products from a common input. Joint processing costs up to the split-off...

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