A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows: $\begin{array}{lrrr}
&\text { Sales Value }& \text { Separable }& \text { Sales Value After }\
\text { Product }& \text { at Split-Off } & \text { Cost } & \text { Further Processina }\
\hline\mathrm{J }& \$ 200 & \$ 100 & \$ 400 \
\mathrm{K} & 300 & 200 & 600 \
\mathrm{L} & 100 & 50 & 140 \
\mathrm{M} & 20 & 10 & 40
\end{array}$ If one unit of L is further processed as shown above, it can be processed again at an additional cost of $160 to obtain product XX. If the firm is to be no worse off from producing product XX, then XX must sell for at least:
A) $250
B) $260
C) $290
D) $300

Question

A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows: $\begin{array}{lrrr}
&\text { Sales Value }& \text { Separable }& \text {  Sales Value After }\
\text { Product }& \text { at Split-Off } & \text { Cost } & \text { Further Processina }\
\hline\mathrm{J }& \$ 200 & \$ 100 & \$ 400 \
\mathrm{K} & 300 & 200 & 600 \
\mathrm{L} & 100 & 50 & 140 \
\mathrm{M} & 20 & 10 & 40
\end{array}$ If one unit of L is further processed as shown above, it can be processed again at an additional cost of $160 to obtain product XX. If the firm is to be no worse off from producing product XX, then XX must sell for at least:
A) $250
B) $260
C) $290
D) $300

Quizplus · Accepted Answer

The Answer of A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows: $\begin{array}{lrrr}
&\text { Sales Value }& \text { Separable }& \text {  Sales Value After }\
\text { Product }& \text { at Split-Off } & \text { Cost } & \text { Further Processina }\
\hline\mathrm{J }& \$ 200 & \$ 100 & \$ 400 \
\mathrm{K} & 300 & 200 & 600 \
\mathrm{L} & 100 & 50 & 140 \
\mathrm{M} & 20 & 10 & 40
\end{array}$ If one unit of L is further processed as shown above, it can be processed again at an additional cost of $160 to obtain product XX. If the firm is to be no worse off from producing product XX, then XX must sell for at least:
A) $250
B) $260
C) $290
D) $300

A Joint Input Costing $500 Results in Four Distinct Products