A and Z are two divisions in a company. Division A makes two products, G and H; G is sold outside the company for £176, while product H is only sold to Division Z at a transfer price of £176. The standard variable costs of producing a unit of H is £140 and a unit of H uses exactly the same resources in Division A s a unit of product G. Division Z has received an offer from another company to supply a substitute for product H at a price of £152 per unit. If Division A cannot increase its external sales of G, what is the impact on profits if Z accepts the offer?          Division A         Overall company A)    increase                increase B)    increase               decrease C)   decrease                increase D)   decrease               decrease

Multiverse currently sells both products at the split-off point. If Multiverse makes decisions which maximizes profit, Multiverse’s profit will increase by 10,000 P50,000 P4,000 P16,000

Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company incurred costs of $31,000. Product Y weighs 15 pounds and product Z weighs 85 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. Based on a physical measure of output, allocate joint costs to products Y and Z. Product Y allocation $______ Product Z allocation $______

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $45,500 a year. The company 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: Product X Product Y Total Allocated joint processing costs $27,300 $ 18,200 $ 45,500 Sales value at split-off point $ 30,000 $20,000 $50,000 Costs of further processing $ 24,200 $ 18,500 $ 42,700 Sales value after further processing $ 47,800 $58,300 $ 106,100 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d.…