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XYZ has three products X, Y, and Z. The joint process costs the company $210,000 resulting in 2,000 lbs of X, 3,000 lbs of Y

XYZ has three products X, Y, and Z. The joint process costs the company $210,000 resulting in 2,000 lbs of X, 3,000 lbs of Y and 5,000 lbs of Z. which can sell for $60, $20, and $10 per gallon respectively. The company is considering further processing of X at a cost of $16,000, further process Y at a cost of $27,000, and further process Z at a cost of $35,000. If these decisions are carried out, the prices of X, Y, and Z will increase to $70, $28, and $17 per gallon respectively. Determine a) whether X, Y, and Z should be produced or not in the first place, b) which of the products X, Y, and Z should be processed further, if any, c) what method of cost allocation would be more conducive to coming up with right decisions?

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