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Ralston Tile produces three types of ceramic tiles, models 45, 51, and 56 from clay, which is mined in the Arizona desert. Budgeted data for

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Ralston Tile produces three types of ceramic tiles, models 45, 51, and 56 from clay, which is mined in the Arizona desert. Budgeted data for next month follows: Units produced 3,000 4,500 6,000 Sales value at split-off per unit $15 $18 $24 Additional processing costs per unit $6 $6 Joint production costs per unit $2 Sales value if processed further per unit $20 $22 $32 The joint cost of mining the clay is $80,000. Which of the products should be produced beyond the split-off point? O Yes Yes Yes O Yes Yes No O No Yes Yes O No No Yes O Yes No No

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