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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