Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 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 XProduct YTotalAllocated joint processing costs$16,800$16,800$33,600Sales value at split-off point$24,000$24,000$48,000Costs of further processing$15,000$18,700$33,700Sales value after further processing$35,500$45,100$80,600What is the financial advantage (disadvantage) for the company of processing Product Y beyond the split-off point?
A. $9,600
B. $2,400
C. $26,400
D. $33,600
Answer: B
Business
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