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?

-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