Moore Manufacturing Company makes two products from a common input. Joint processing costs up to the split-off point total £23,400. The company allocates the joint costs to the products on the basis of their total sales values at split-off. The total sales value at split-off for both products is the same. Each product may be sold at the split-off point or processed further. Data concerning one of these products are as follows: $\begin{array}{lr}
\text { Sales value at split-off } & £ 15,000 \
\text { Cost of further processing } & 10,000 \
\text { Sales value after further processing } & 30,000
\end{array}$ What is the minimum amount the company would accept for this product if it is to be sold at the split-off point?
A)£10,000
B)£21,700
C)£20,000
D)£26,700

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The Answer of Moore Manufacturing Company makes two products from a common input. Joint processing costs up to the split-off point total £23,400. The company allocates the joint costs to the products on the basis of their total sales values at split-off. The total sales value at split-off for both products is the same. Each product may be sold at the split-off point or processed further. Data concerning one of these products are as follows: $\begin{array}{lr}
\text { Sales value at split-off } & £ 15,000 \
\text { Cost of further processing } & 10,000 \
\text { Sales value after further processing } & 30,000
\end{array}$ What is the minimum amount the company would accept for this product if it is to be sold at the split-off point?
A)£10,000
B)£21,700
C)£20,000
D)£26,700

Moore Manufacturing Company Makes Two Products from a Common Input