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

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

Product X Product Y Product Z
Units produced 2,000 2,500 3,500
Per unit sales value at split-off $ 18 $ 23 $ 20
Added processing costs per unit $ 1 $ 3 $ 3
Per unit sales value if processed further $ 24 $ 24 $ 29

If the cost of raw material input is $73,000, which of the products should be processed beyond the split-off point?

Product X Product Y Product Z
A) yes yes no
B) yes no yes
C) no yes no
D) no yes yes

Option B
Option C
Option D
Option A

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