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Dowchow Company Makes Two Products from a Common Input $38,400\$ 38,400

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Dowchow Company makes two products from a common input. Joint processing costs up to the split-off point total $38,400\$ 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:

 Product X  Product Y  Total  Allocated Joint Processing Costs 20,80017,60038,400 Sales Value at Split-Off Point 26,00022,00048,000 Costs of Further Processing 22,60020,40043,000 Sales Value after Further Processing 45,00045,90090,900\begin{array}{|l|r|r|r|}\hline & \text { Product X } & \text { Product Y } & \text { Total } \\\hline \text { Allocated Joint Processing Costs } & 20,800 & 17,600 & 38,400 \\\hline \text { Sales Value at Split-Off Point } & 26,000 & 22,000 & 48,000 \\\hline \text { Costs of Further Processing } & 22,600 & 20,400 & 43,000 \\\hline \text { Sales Value after Further Processing } & 45,000 & 45,900 & 90,900 \\\hline\end{array}
-What is the net monetary advantage of processing Product Y beyond the split-off point?

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