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WP Company produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month
WP Company produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: X Y Z Units Produced 2,000 2,500 3,500 Per Unit Sales Value at Split-Off $20 $22 $25 Added Processing Costs per Unit $5.00 $5.40 $5.00 Per Unit Sales Value if Processed Further $30 $30 $31 The cost of the joint raw material input is $150,000. Which of the products should be processed beyond the split-off point? X Y Z A) Yes Yes No B) Yes Yes Yes C) Yes No Yes D) No No No Multiple Choice Option A Option B Option C Option D
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