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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 | 1,400 | 1,900 | 2,900 |
Per unit sales value at split-off | $12 | $17 | $14 |
Added processing costs per unit | $3 | $5 | $5 |
Per unit sales value if processed further | $18 | $18 | $23 |
If the cost of the raw material input is $67,000, 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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