Dowchow Corporation makes two products from a common input.Joint processing costs up to the split-off point total $38, 400 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: What is the net monetary advantage (disadvantage)of processing Product Y beyond the split-off point?
A)$3, 500
B)$7, 900
C)$29, 900
D)$25, 500

Question

Dowchow Corporation makes two products from a common input.Joint processing costs up to the split-off point total $38, 400 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:  What is the net monetary advantage (disadvantage)of processing Product Y beyond the split-off point?
A)$3, 500 
B)$7, 900 
C)$29, 900 
D)$25, 500

Quizplus · Accepted Answer

The Answer of Dowchow Corporation makes two products from a common input.Joint processing costs up to the split-off point total $38, 400 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:  What is the net monetary advantage (disadvantage)of processing Product Y beyond the split-off point?
A)$3, 500 
B)$7, 900 
C)$29, 900 
D)$25, 500

Dowchow Corporation Makes Two Products from a Common Input