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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: Units produced
Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month is as follows: Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further Product 2,400 $191 $3 $25 Product 2,900 T $21 $5 $25 Product K 3,900 $24 $5 $30 If the cost of the raw material input is $87,000, which of the products should be processed beyond the split- off point? Product yes yes no no A) B) C) D) Product J yes no yes yes Product K. no yes no yes O Option C O O Option D Option B
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