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Gary Corporation produces products X, Y and Z from a single raw material input. Budgeted data for the next month is as follows:
Product X Product Y Product Z
Units produced 2,500 3,000 4,000
Per unit Sales Value at split off $20 $22 $25
Added processing costs per unit $8 $8.50 $8
Per unit sales value if process further $30 $30 $35
Question 1: If the cost of raw material input is $150,000, which of the products should be processed beyond the split off point?
A no yes no
B no yes yes
C yes no yes
D yes yes no
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