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A company produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next
A company produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product Z Product Y Product X Units produced 1,500 2,000 3,000 Per unit sales value at split-off $18.00 $20.00 $25.00 Added processing costs per unit $10.00 $9.50 $4.00 Per unit sales value if processed further $29.00 $29.00 $30.50 The cost of the joint raw material input is $150,000. Which of the products should be processed beyond the split-off point? Products Y and X. Products Z and Y. Products Z and X. Products Z, Y. X.
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