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 2,700 3,200 4,200 Per unit sales value at split-off $25 $28 $27 Added processing costs per unit $2 $4 $4 Per unit sales value if processed further $31 $31 $36
If the cost of the raw material input is $90,000, 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 A Option B Option C Option D
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