Please advise how it was determined:

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 2,500 3,000 4,000

Per unit Sales Value at split off $20 $22 $25

Added processing costs per unit $8 $8.50 $8

Per unit sales value if process further $30 $30 $35

If the cost of raw material input is $150,000, which of the products should be processed beyond the split off point?

Product X Product Y Product Z

A no yes no

B no yes yes

C yes no yes

D yes yes no

Answers

a for option a

b for option b

c for option c

d for option d