Question
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
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 2,600 $ 24.00 $ 1.00 Product Y 3,100 $ 27.00 $ 3.00 $29.00 $ 29.00 Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further The cost of the joint raw material input is $91,000. Which of the products should be processed beyond the split-off point? A) B) Product X yes yes no no Product Y yes no yes yes Product Z Product Z 4,100 $26.00 $ 3.00 $ 34.00 no yes no yes
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