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LanaTech produces three products, X, Y, and Z, from recycled paper. Budgeted data for next month follows: X Y z Units produced 800 2.400 1,600

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LanaTech produces three products, X, Y, and Z, from recycled paper. Budgeted data for next month follows: X Y z Units produced 800 2.400 1,600 Sales value at split-off per unit $6 $15 $12 Additional processing costs per unit $1 $4 $5 Joint production costs per unit $2 $6 $4 Sales value if processed further per unit $9 $20 $16 The joint cost of the recycled paper is $110,000. Which of the products should be produced beyond the split-off point? Y z A. No Yes Yes B. Yes Yes No C. No No No D. No Yes No

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