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Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows: Product X Y
Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows: Product X Y Z Units produced 2,500 3,000 4,000 Per unit sales value at split-off $20.00 $23.00 $21.00 Allocated costs at split off $3.00 $1.00 $6.00 Added processing costs per unit $8.00 $8.00 $8.00 Per unit sales value if processed further $30.00 $30.00 $30.00 The raw material relating to getting these units to split off is $150,000. What is the change in net income if Product X is processed further? ($5,000) $55,000 ($2,500) O $30,000 O $5,000
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