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Acct 204 Fall 2017 Test 2 6. Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next

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Acct 204 Fall 2017 Test 2 6. Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows: Product Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further 2,500 3,000 4,000 S20.00 $23.00 $21.00 $8.00 $8.00 S8.00 $30.00 $30.00 $30.00 The raw material relating to getting these units to split ofis $150,000 Which of the products should be processed beyond the split-off point? Product X Y Z A) no yes no B) no yes yes C) yes yes no D) yes no yes 7. Consider the following production and cost data for two products, X and Y: Product 6,500 4,800 $24.00 $18.00 Demand in units Contribution margin per unit Direct labor hours per unit. Machine hours per unit You have 15,000 direct labor hours available each period. What is the largest possible total contribution margin that can be realized each period? C. $172,800 D. $86,400 A. $129,600 B. $168,000 8. If the internal rate of return is used as the discount rate in computing net present value, t net present value will be: A) positive. B) negative C) zero D) unknown

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