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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: Units produced
Gary Corporation produces products X, Y, and Z from a single raw material input. Budgeted data for the next month is as follows: Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further Product X 1,900 $ 17 $ 2 $ 22 Product Y 2,400 $ 21 $ 4 $ 22 Product Z 3,400 $ 19 $ 4 $ 27 If the cost of raw material input is $72,000, which of the products should be processed beyond the split-off point? Product X yes yes no no Product Y yes no Product Z no yes no yes yes yes O Option A O Option C Option D 0 Option B
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