The Blade Division of Dana Company produces hardened steel blades. Approximately one-third of the Blade Division's output is sold to the Lawn Products Division of Dana; the remainder is sold to outside customers. Blade Division's estimated sales and cost data for the year ending June 30th are as follows: Revenue Variable costs Fixed costs Gross margin Unit sales Sales to Lawn Products Division $ 19,500 13,000 3,600 $ 2,900 13,000 Sales to Outsiders $ 52,000 26,000 10,500 $ 15,500 26,000 The Lawn Products Division has an opportunity to purchase, on a continual basis, 10,000 blades (of identical quality) from an outside supplier, at a cost of $1.40 per unit. Assume that the Blade Division cannot sell any additional products to outside customers. Assume, too, that there are no short-term avoidable fixed costs. Based solely on short-term financial considerations, should Dana allow its Lawn Products Division to purchase the blades from the outside supplier, and why? Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales values of the products at the split-off point. Additional information is as follows: Units produced Allocated joint costs Sales value at split-off Additional costs for further processing Sales value if processed further X 21,000 $294,800 ? 59,000 449,000 Y 17,000 $160,800 240,000 51,000 346,000 Z 13,000 $134,000 200,000 36,000 308,000 Total 51,000 $ 589,600 880,000 146,000 1,103,000 Based solely on a relevant cost analysis, which of the three products should be processed by Walman beyond the split-off point