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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 1,400 1,900 2,900 Per unit sales value at split-off $12 $17 $14 Added processing costs per unit $3 $5 $5 Per unit sales value if processed further $18 $18 $23 If the cost of the raw material input is $67,000, 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

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