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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

2,500

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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