apters 10,11,12 WP Corporation produces products X, Y, and Z from a single raw m

Question

apters 10,11,12 WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted deta for the next month is as follows Product X Product 3,100 Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales 4,100 24.00 27.00 26.00 $ 1.00 3.003.00 s 29.00 29.00 34.00 2,600 value if processed further The cost of the joint raw material input is $91,000. Which of the products should be processed beyond the split-off point? A) B) C) D) yes yes no yes Multiple Choice Choice A Prev 32 of 32 Ill Next)

Explanation / Answer

Analysis :

So answer is b) Choice B

Product X Product Y Product Z Sale value after further processing 29 29 34 Sale value at split off point 24 27 26 Incremental sale value 5 2 8 Additional cost 1 3 3 Incremental profit (loss) 4 -1 5 Analaysis Yes No Yes

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