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Your Friends Factory produces products X, Y, and Z from a single raw material input. The input cost for the single raw material is $120,000.
Your Friends Factory produces products X, Y, and Z from a single raw material input. The input cost for the single raw material is $120,000. Budgeted data for the next month is as follows:
Product X |
| Product Y | Product Z | |
Units produced................. | 5,500 |
| 5,000 | 4,500 |
Per unit sales value at split-off...... | $ 19.00 |
| $ 25.00 | $ 22.00 |
Added processing costs per unit.... | $ 8.50 |
| $ 7.50 | $ 8.00 |
Per unit sales value if processed further..... | $ 33.00 |
| $ 35.00 | $ 29.00 |
ANSWER EACH QUESTION:
- (2 pts) What is the PER UNIT profit (or loss) on each productif it is processed further? SHOW YOUR WORK 2. (1 pt) Which product or products should be processed further?
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