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Gary Corporation produces products X, Y, and Z a single raw material input. Budgeted data for from the next month is as follows: Product x
Gary Corporation produces products X, Y, and Z a single raw material input. Budgeted data for from the next month is as follows: Product x Product Y Product Z Units produced 2, 500 3,000 4,000 Per unit sales value at split-off $20.00 $22.00 $25.00 Added processing costs per unit $8.00 $8.50 $8.00 Per unit sales value if processed further. $30.00 $30.00 $35.00 If the cost of raw material input is $150,000, which of the products should be processed beyond split-off point? Product X Product Y Product Z A) no yes no B) no yes yes C) yes no yes D) yes yes no D. $22.24 per unit
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