Candra GmbH obtains two products from a common input, Crude Oil. Joint processing costs up to the split-off point total $66,400 per year. Candra 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: Light Crude Oil Heavy Crude Oil Allocated joint processing costs $36,700 $29,700 Sales value at split-off point $43,306 $35,046 Costs of further processing $32,500 $35,300 Sales Value after further processing $75,475 $70,941 What is the net monetary advantage in dollars of processing Light Crude Oil beyond the split-off point into gasoline? Do not include a $. Enter a net disadvantage as a negative.
Candra GmbH obtains two products from a common input, Crude Oil. Joint processing costs up to the split-off point total $66,400 per year. Candra 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: Light Crude Oil Heavy Crude Oil Allocated joint processing costs $36,700 $29,700 Sales value at split-off point $43,306 $35,046 Costs of further processing $32,500 $35,300 Sales Value after further processing $75,475 $70,941 What is the net monetary advantage in dollars of processing Light Crude Oil beyond the split-off point into gasoline? Do not include a $. Enter a net disadvantage as a negative.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Candra GmbH obtains two products from a common input, Crude Oil. Joint
| Light Crude Oil | Heavy Crude Oil | |
| Allocated joint processing costs | $36,700 | $29,700 |
| Sales value at split-off point | $43,306 | $35,046 |
| Costs of further processing | $32,500 | $35,300 |
| Sales Value after further processing | $75,475 | $70,941 |
What is the net monetary advantage in dollars of processing Light Crude Oil beyond the split-off point into gasoline? Do not include a $. Enter a net disadvantage as a negative.
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