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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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