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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:
Pig Iron
Trace Elements
Allocated joint processing costs
$38,000
$37,100
Sales value at split-off point
$43,320
$42,294
Costs of further processing
$29,900
$39,600
Sales Value after further processing
$73,277
$82,827
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.
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