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Question 6 -Sell or Process Further - 25 points Selex Company grows a commodity and then processes it into the raw material needed for products

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Question 6 -Sell or Process Further - 25 points Selex Company grows a commodity and then processes it into the raw material needed for products XY and Z. Costs to this point are $1,000,000 per year. These raw materials could be sold to manufacturers as is for: Product X-5500,000, Product Y-5900,000, and Product Z-5600,000 Selex has the facilities to process the products further to make "Super products. The additional processing cost and the final sales value on an annual basis) after further processing are shown below. PRODUCT ADDITIONAL PROCESSING SALES COSTS VALUE SuperX $350,000 $800,000 Supery $400,000 $1,500,000 Superz $180,000 $750,000 Selling and Administrative costs are 5550,000 and will not be affected by any processing decisions. 1. (10 points) If Salex processes all products to the Super products, how much operating profit will they make? Provide this information in the form of a segmented income statement 2. (10 points) Which product or products should be sold at the split-off point, and which productor products should be processed into "Super products? 3.15 points) Using the same format as used in part 1. show the final operating profit based on your decisions in part 2

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