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Question # 8: From a particular joint process, Watkins Company produces three products X, Y, and Z. Each product may be sold at the point of split-off or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. In 19, these products were processed beyond split-off. Joint production costs for the year were $60,000. Sales values and costs needed to evaluate Watkins' 19 production policy follow: If Units Sales Value Processed Further Produced At Split off Added Cost Sale value X $25,000 $42,000 Y 41,000 45,000 6,000 $9,000 4,000 7,000 2,000 8,000 Z 24,000 32,000 Joint costs are allocated to the products in proportion to the relative physical volume of output. Required: (1) For units of Product Z, the unit production cost most relevant to a sell, or process further, decision. (2) The products the company should subject to additional processing in order to maximize profits