Dodge Company makes two products from a common input. Joint processing costs up to the split-off point total $44,800 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 X beyond the split-off point?
A) $31,300
B) $5,300
C) $23,500
D) $(2,500)

Question

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The Answer of Dodge Company makes two products from a common input. Joint processing costs up to the split-off point total $44,800 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 X beyond the split-off point?
A) $31,300
B) $5,300
C) $23,500
D) $(2,500)

Dodge Company Makes Two Products from a Common Input