Problem 4 1) Doggy Company has three joint products, produced using single raw material. Joint production cost total $140,000 and allocated to each product equally. X-Wool Y-Wool Z-Wool Quantity produced in units............. 10,000 20,000 15,000 Sales value per unit at split-off point $ 12.00 $ 7.50 $ 4.00 Sales value after further processed....... $ 16.00 $ 12.00 $ 6.00 Additional processing cost per unit...... $ 5.00 $ 3.00 $ 0.602 To maximize company's overall profit, which product should be sold at split-off point and which product should be further processed. F 2) Fox Company selling price per unit on its unprofitable product-line is $800, cost data for the month of this product-line below: Per Unit DM........... 400+ DL.............. 16044 Variable MOH....... 30++ Variable selling and administrative..... 7 754 Monthly production and sales of this product-line total 1,000 units. Total fixed costs $211,000 per month. If the product is dropped variable selling and administrative expense can be reduced by $15 per unit and 20% of fixed cost can be eliminated. How much would be the increase or decrease in profit, if the product-line was dropped.? 1 G