Dodrill Company Makes Two Products from a Common Input

Multiple Choice

Dodrill Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 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) $26,800
B) $7,000
C) $4,800
D) $29,000