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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:

  1. (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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