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Each day, Wildhorse Corporation processes 1 ton of a secret raw material into two resulting products, A B 1 and X Y 1 . When

Each day, Wildhorse Corporation processes 1 ton of a secret raw material into two resulting products, A B 1 and X Y 1. When it processes 1 ton of the raw material, the company incurs joint processing costs of $82,000. It allocates $47,000 of these costs to AB1 and $35,000 of these costs to XY1. The resulting AB1 can be sold for $122,000. Alternatively, it can be processed further to make AB2 at an additional processing cost of $75,000, and sold for $188,000. Each days batch of XY1 can be sold for $120,000. Or, it can be processed further to create XY2, at an additional processing cost of $72,000 and sold for $152,000 What products should Wildhorse Corporation make and sell.

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