Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $47,000 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:
| Product X |
Product Y |
Total |
| Allocated joint processing costs |
$ |
18,400 |
$ |
28,600 |
$ |
47,000 |
| Sales value at split-off point |
$ |
25,650 |
$ |
37,400 |
$ |
63,050 |
| Costs of further processing |
$ |
22,900 |
$ |
17,200 |
$ |
40,100 |
| Sales value after further processing |
$ |
48,000 |
$ |
55,700 |
$ |
103,700 |
Required:
a. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? (Input the amount as a positive value. Omit the "$" sign in your response.)
b. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? (Input the amount as a positive value. Omit the "$" sign in your response.)
c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? (Omit the "$" sign in your response.)
d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? (Omit the "$" sign in your response.)