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Gary Company produces products X, Y, and Z from a single raw material input. Budgeted data for the next month is as follows: Product X

Gary Company produces products X, Y, and Z from a single raw material input. Budgeted data

for the next month is as follows:

Product

X Y Z

Units produced 2,500 3,000 4,000

Per unit sales value at split-off $20 $22 $25

Costs of processing further per unit $8 $8.50 $8

Per unit sales value if processed further $30 $30 $35

If the raw material input cost $150,000, which products should be processed beyond the split-off point?

Question 3 options:

x - no

y - yes

z - no

x - no

y - yes

z - yes

x - yes

y - no

z - yes

x - yes

y - yes

z - no

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