Dodge Company Makes Two Products from a Common Input

Multiple Choice

Dodge Company makes two products from a common input. Joint processing costs up to the split-off point total $44,800 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 minimum amount the company should accept for Product X if it is to be sold at the split-off point?

A) $40,000
B) $23,500
C) $18,200
D) $45,300