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Wright Company produces products Basic, Deluxe, and Supreme from a single raw material input. Budgeted data for the next month follows: Basic Deluxe Supreme Per

Wright Company produces products Basic, Deluxe, and Supreme from a single raw material input. Budgeted data for the next month follows:

Basic Deluxe Supreme
Per unit sales value at split-off $ 10 $ 12 $ 15
Additional processing costs per unit $ 2 $ 4 $ 4
Per unit sales value if processed further $ 15 $ 15 $ 20

If the cost of the raw material input (the joint cost) is $78,000, which of the products should be processed beyond the split-off point?

Basic Deluxe Supreme
A. yes yes no
B. yes no yes
C. no yes no
D. no yes yes

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