WP Corporation 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:

	Product X		Product Y		Product Z
Units produced		1,800		2,300		3,300
Per unit sales value at split-off	$	16.00	$	19.00	$	18.00
Added processing costs per unit	$	3.00	$	5.00	$	5.00
Per unit sales value if processed further	$	20.00	$	20.00	$	25.00

The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point?

	Product X	Product Y	Product Z
A)	Yes	Yes	No
B)	Yes	No	Yes
C)	No	Yes	No
D)	No	Yes	Yes

Multiple Choice

Choice D

Choice A

Choice B

Choice C