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

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

Product I Product J Product K
Units produced 2,200 2,700 3,700
Per unit sales value at split-off $17 $23 $22
Added processing costs per unit $1 $3 $3
Per unit sales value if processed further $25 $25 $30

If the cost of the raw material input is $85,000, 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

Which below is the correct answer?

Option B Option C Option A Option D

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