Product X and Y are made from a common input. Joint processing costs up to the split-off point total $48,500 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: Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product x $18.700 $ 25,800 $ 23,200 $ 48,600 Product Y $ 29,800 $ 37,750 $ 17,500 $ 56,300 Total $ 48,500 $ 63,550 $ 40,700 $104,900 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be Indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split off point? (Negative amount should be Indicated by a minus sign.)
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