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Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month is as follows: Product I

Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month is as follows:

Product I Product J Product K
Units produced 2,600 3,100 4,100
Per unit sales value at split-off $24 $27 $26
Added processing costs per unit $1 $3 $3
Per unit sales value if processed further $29 $29 $34

If the cost of the raw material input is $91,000, which of the products should be processed beyond the split-off point?

Product I Product J Product K
A) yes yes no
B) yes no yes
C) no yes no
D) no yes yes

A) Option A

B) Option B

C) Option C

D) Option D

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