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Dodge Company produces two products from the common input. Joint processing costs up to split-off point total $44,900 a year. Company assigns these costs to joint products on basis of their total sales values at split-off point. Each product may be sold at split-off point or processed further. Data regarding these products given below:

Product X Product Y Total

Allocated joint processing costs $17,600 $27,300 $44,900
Sales value at split-off point $27,200 $37,200 $64,400
Costs of further processing $22,800 $19,600 $42,400
Sales value after further processing $44,100 $62,000 $106,100

Determine the net monetary advantage (disadvantage) of processing Product X beyond split-off point?

i) $30,900

ii) $21,300

iii) $3,700

iv) $5,900)

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M931184

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