Dock corporation makes two products from a common input. joint processing costs up to the split-off point total $33,600 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 16,800 16,800 33,600 sales value at split-off point $ 24,000 $ 24,000 $ 48,000 costs of further processing $ 15,000 $ 18,700 $ 33,700 sales value after further processing $ 35,500 $ 45,100 $ 80,600 what is the minimum amount the company should accept for product x if it is to be sold at the split-off point

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers. b) may not accept the offer because it is considered lavish entertainment. c) must obtain written consent from batts brothers before accepting the offer.