## Answers

Incremental analysis | ||||||||

X | Y | |||||||

Sales after further processing | 47000 | 54700 | ||||||

Less: Sales at splitt off | 30000 | 20000 | ||||||

Incremental revenue | 17000 | 34700 | ||||||

Less: Incremental cost | 22400 | 16700 | ||||||

Incremental Income | -5400 | 18000 | ||||||

Financial disadvantage of processing X beyond splitt off | -5400 | |||||||

Financial advantage of processing Y beyond splitt off: | 18000 | |||||||

Minimum amount for selling X at splitt off | 24600 | (47000-22400) | ||||||

Minimum amount for selling Y at splitt off | 38000 | (54700-16700) | ||||||

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