AFM Company makes two products from a joint production process. Each product may be sold at the split-off point or processed further. Information concerning these products for last year appears below:
Product X Product Y
Allocated joint costs .................... $25,000 $19,000
Sales value after further processing ..... $47,000 $41,000
Sales value at the split-off point ....... $29,000 $24,000
Additional processing costs .............. $16,000 $19,000
Assume AFM Company makes all the correct sell or process further decisions.
Calculate the net income reported by AFM Company last year.