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A company produces two products in a joint process, Z8 and W9. The cost of producing Z8 and W9 is $3755 per batch. Additional information
A company produces two products in a joint process, Z8 and W9. The cost of producing Z8 and W9 is $3755 per batch. Additional information relating to the production of products Z8 and W9 is given below:
|
| Z8 | W9 |
| Number of units | 600 | 315 |
| Selling price per unit at the split off point | $8.00 | $12.30 |
Product W9 can be processed further into product W10 at a cost of $975. Product W10 can then be sold for $25.37 per unit.
How many units of W10 does the company have to sell to justify the further processing of W9?
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