Part 2 contains 3 Decision making recommendations that are independent of each other.Covers material in Module 17. Make sure you show your work. Decision Making #1 Juice company processes raw material X into joint products Y and Z. Raw material X costs: $6 per liter It costs $100 to convert these 100 liters into 60 Liters of Y 40 Liters of Z Product Y can be sold immediately for $8 per liter or processed further into product B at an additional cost of $2 per liter Product B can then be sold for $9 per liter Product Z can be sold immediately for $7 per liter or processed further into product A at an additional cost of $5 per liter Product A can then be sold for $14 per liter Required: Determine if these 2 products Product Y and Product Z should be sold at split off or processed further. Explain your decision.Provide the total dollar generated in income for each product at split off and if processed further.Provide a recommendation based on your analysis to income. Also, explain what are the irrelevant costs. Solution: Product Y income generates at split off Product Yincome if process further into B Recommendation: Product Zincome generates at split off Product Zincome if process further into A Recommendation: Decision Making #2 ABC Company produces three products:A, B, and C. The company only has 260 labor hours per week to produce these 3 products Product information is as follows: A B C Unit selling price 160 100 210 Unit variable costs 100 50 180 Unit contribution margin 60 50 30 Labor hours per unit 5 4 6 Maximum demand in units per week 15 20 30 Required: What is the optimal product mix(how many A, B, and C should be produced) the company would produce for a week based on only having 240 labor hours and the demand for each product? Explain your answer and show computations. Solution: Contribution margin per scarce resource-labor hours=unit CM/unit labor hours Ranked by order scarce resource of labor hour Optimal product Mix: Decision Making #3 Candy Shop offers 20 coupons for $4 in a coupon book.The coupons are redeemable for a special candy bar. Coupon sales average 500 books per year. Which contain 20 coupons Sale price per coupon book $5 The printing costs total: $70 The special candy bar normally sells at $0.60 The variable cost for a special candy bar is $0.30 Required: Determine if it is profitable for the Candy Shop to sell these coupon books if all the coupons are redeemed. Show your calculations on the profitability of selling coupon books and recommend if the company should continue selling the coupon books. Solution: