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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
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 2,400 2,900 3,900 Per unit sales value at split-off $19 $21 $24 4:38 Added processing costs per unit $3 $5 $5 Per unit sales value if processed $25 $25 $30 further If the cost of the raw material input is $87,000, which of the products should be processed beyond the split-off point? Product X Product Y Product Z A) yes yes no B) yes yes C) no yes no D) no yes yes
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