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Farrugia Corporation produces two intermediate products, A and $B,$ from a common input. Intermediate product A can be further processed into Product $x.$ Intermediate product B can be further processed into Product $Y.$ The common input is purchased in batches that cost $$32$ each and the cost of processing a batch to produce intermediate products A and $B$ is $$13.$ Intermediate product A can be sold as is for $$21$ or processed further for $$13$ to make Product $x$ that is sold for $$29.$ Intermediate product B can be sold as is for $$46$ or processed further for $$26$ to make Product $Y$ that is sold for $$58.$

Required:

a$.$ Assuming that no other costs are involved in processing the common input or in selling products, what is the profit $($loss$)$ from processing one batch of the common inout into the products $x$ and $Y?$

b$.$ What is the Financial advantage $($disad tage$)$ from further processing? Should each of the intermediate products, A and B$,$ be sold as is or processed further?

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

What is the Financial advantage $($disadvantage$)$ from further processing? Should each of the intermediate products, A and $B,$ be sold as is or processed further?

Note: Negative amounts should be indicated by a minus sign.

Financial advantage $($disadvantage$)$ from further processing

Should each of the intermediate products, A and $B,$ be sold as is or processed further?

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