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 Y beyond the split-off point?

A) $3, 500
B) $7, 900
C) $29, 900
D) $25, 500