Question
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 | 2,500 | 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 the 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 |
Option A
Option B
Option C
Option D
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