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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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