Question - Fuji Corporation obtains two products from a common input, Iron Ore. Joint processing costs up to the split-off point total $75,100 per year. Fuji 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:
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Pig Iron
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Trace Elements
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Allocated joint processing costs
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$38,000
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$37,100
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Sales value at split-off point
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$43,320
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$42,294
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Costs of further processing
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$29,900
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$39,600
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Sales Value after further processing
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$73,277
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$82,827
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What is the net monetary advantage in dollars of processing Pig Iron beyond the split-off point into steel? Do not include a $. Enter a net disadvantage as a negative.