Dowchow Corporation Makes Two Products from a Common Input

Multiple Choice

Dowchow Corporation makes two products from a common input.Joint processing costs up to the split-off point total $38, 400 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) $1, 600
B) $22, 400
C) $27, 600
D) $(3, 600)