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bennick bennick
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A year ago

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 XProduct YTotal
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?



▸ ($3,500)

▸ $27,700

▸ $20,500

▸ $3,700
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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tkane127tkane127
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A year ago
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