Dodrill Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:
-What is the net monetary advantage (disadvantage)of processing Product Y beyond the split-off point?
A)$(4,200)
B)$21,800
C)$24,400
D)$(1,600)

Question

Dodrill Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: 
-What is the net monetary advantage (disadvantage)of processing Product Y beyond the split-off point?
A)$(4,200) 
B)$21,800 
C)$24,400 
D)$(1,600)

Quizplus · Accepted Answer

The Answer of  Dodrill Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: 
-What is the net monetary advantage (disadvantage)of processing Product Y beyond the split-off point?
A)$(4,200) 
B)$21,800 
C)$24,400 
D)$(1,600)

Dodrill Company Makes Two Products from a Common Input