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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 Product Y Product Z
Units produced 2,400 2,900 3,900
Per unit sales value at split-off $ 19.00 $ 21.00 $ 24.00
Added processing costs per unit $ 3.00 $ 5.00 $ 5.00
Per unit sales value if processed further $ 25.00 $ 25.00 $ 30.00

The cost of the joint raw material input is $87,000. 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

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