a. Increase in sales from further processing = Sales value after further processing - Sales value at split-off point
Product X = $38,000 - $20,000
= $18,000
Financial advantage = Increase in sales from further processing - Costs of further processing
= $18,000 - $24,300
= ($6,300)
b. Increase in sales from further processing = Sales value after further processing - Sales value at split-off point
Product Y = $58,500 - $30,000
= $28,500
Financial advantage = Increase in sales from further processing - Costs of further processing
= $28,500 - $18,600
= $9,900
c. Minimum acceptable amount = Allocated joint processing costs
Product X = $18,400
d. Minimum acceptable amount = Allocated joint processing costs
Product Y = $27,600
TB Problem Qu. 12-203 lbsen Company makes two products from a common... lbsen Company makes two...
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