Problem 1 Watkins Company produces three products, X, Y and Z. each product may be sold at split-off or processed further. Additional processing requires no special facilities and production costs of further processing are entirely variable and traceable to the products involved. In 2016, all three products were processed beyond split- off. Joint production costs for the year was P 60,000. Sales value and costs for 2016 were as follows: X Y Units 6,000 4,000 2.000 Produced Sales Value P 25,000 P 41,000 P 24,000 at Split - off If processed further: Final Sales P 42,000 P 45,000 P 32,000 Value Separable 9,000 7,000 8,000 Costs Joint costs are allocated to the three products in proportion to the relative physical volume of output. 1) The relevant cost for a decision to sell Product Z or process further is? 2) To maximize operating income, which of the following products should be processed further? 3) The net income upon maximization is