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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

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:

45 51 56

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 $7

Joint production costs per unit $2 $5 $5

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?

Yes Yes Yes
Yes Yes No
No Yes Yes
No No Yes
Yes No No

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