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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 2,500 3,000 4,000
Per unit sales value at split-off $20 $25 $25
Added processing costs per unit $4 $6 $6
Per unit sales value if processed further $28 $28 $33

If the cost of the raw material input is $88,000, 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

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