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 1,500 2,000 3,000 Per unit sales value at split-off $13 $18 $15 Added processing costs per unit $4 $6 $6 Per unit sales value if processed further $19 $19 $24 If the cost of the raw material input is $68,000, 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 C Option A Option D Option B
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