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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 Units produced

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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 Units produced Per unit sales value at split-off Allocated costs at split off Added processing costs per unit Per unit sales value if processed further X 2,500 3,000 4,000 $20.00 $23.00 $21.00 $3.00 $1.00 $6.00 $8.00 $8.00 $8.00 $30.00 $30.00 $30.00 The raw material relating to getting these units to split off is $250,000. What is the change in net income if Product Y is processed further? OS 3,000 $66.000 ($6,000) $45,000 ($3,000)

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