Question
Bermuda Triangle Corporation has a joint process that produces three products: X, Y and Z. Each product may be sold at split-off or processed further
Bermuda Triangle Corporation has a joint process that produces three products: X, Y and Z. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $100,000. Other data follows:
Product | Sales Value at Split-Off | Separable Processing Costs after Split-Off | Sales Value at Completion |
X |
$128,000 |
$16,000 |
$160,000 |
Y |
50,000 |
27,000 |
76,000 |
Z |
25,600 |
20,000 |
40,000 |
To maximize profits, the corporation should process ________ further.
Select one:
a. Products X, Y and Z
b. Product X only
c. Product Y only
d. Product Z only
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