Reference no: EM132514611

Germantown Corporation has a joint process that produces three products: X, Y and Z. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $100,000. Other data follows:

Product              Sales Value at Split-Off     Separable Processing Costs after Split-Off   Sales Value at Completion

X                        $128,000                   $16,000                                                       $140,000

Y                           50,000                     27,000                                                          76,000

Z                            25,600                   10,000                                                              40,000

Question 1: To maximize profits, the corporation should process ________ further.