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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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