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WP Company Produces Products X,Y,and Z from a Single Raw

Question 24

Multiple Choice

WP Company produces products X,Y,and Z from a single raw material input in a joint production process.Budgeted data for the next month is as follows:
XYZ Units Produced 1,5002,0003,000 Per Unit Sales Value at Split-Off $19$21$24 Added Processing Costs per Unit $7$7.50$7 Per Unit Sales Value if Processed Further $29$29$30\begin{array}{|l|r|r|r|}\hline&X&Y&Z\\\hline \text { Units Produced } & 1,500 & 2,000 & 3,000 \\\hline \text { Per Unit Sales Value at Split-Off } & \$ 19 & \$ 21 & \$ 24 \\\hline \text { Added Processing Costs per Unit } & \$ 7 & \$ 7.50 & \$ 7 \\\hline \text { Per Unit Sales Value if Processed Further } & \$ 29 & \$ 29 & \$ 30\\\hline\end{array}
The cost of the joint raw material input is $149,000.Which of the products should be processed beyond the split-off point?
XYZ A)   Yes  Yes  No  B)   No  Yes  No  C)   Yes  No  Yes  D)   No  Yes  Yes \begin{array} { | l | l | l | l | } \hline & \mathbf { X } & \mathbf { Y } & \mathbf { Z } \\\hline \text { A) } & \text { Yes } & \text { Yes } & \text { No } \\\hline \text { B) } & \text { No } & \text { Yes } & \text { No } \\\hline \text { C) } & \text { Yes } & \text { No } & \text { Yes } \\\hline \text { D) } & \text { No } & \text { Yes } & \text { Yes } \\\hline\end{array}


A) Option A
B) Option B
C) Option C
D) Option D

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