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Dodrill Co. makes two joint products from a common input. Data concerning the two products appear below: Allocated joint production costs Sales value at split-off
Dodrill Co. makes two joint products from a common input. Data concerning the two products appear below: Allocated joint production costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $19.800 $21,000 $25,400 $52,100 Product Y $24,200 $25,000 $16,400 $38,200 Total $43,000 $46,000 $42,000 $90,300 To maximize profit, which of the following statements is correct? O Product X should be processed further; product Y should be sold at the split-off point. Both products should be processed further. Product X should be sold at the split-off point; product Y should be processed further. Both products should be sold at the split-off point. Trephis Corporation produces the following three products, X, Y, and Z: Selling price per unit Total variable cost per unit Machine hours needed per unit Product X $55 $35 3 hours Product Y $42 $21 2 hours Product Z $31 $18.5 1.5 hours All three products are processed on the same machine. Machine hours on the machine are the constrained resource. Which of the following statement is correct? O X would be the most profitable use of this constraint; Y would be the least profitable use of this constraint O Y would be the most profitable use of this constraint; Z would be the least profitable use of this constraint. O Y would be the most profitable use of this constraint; X would be the least profitable use of this constraint. Z would be the most profitable use of this constraint; Y would be the least profitable use of this constraint
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