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Find which should be sold at split off point

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Part Processing Company manufactures three products using the same production process. The costs incurred up to the split-off (separation) point are Sh 200,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow:

                          Number of Selling             Price Selling               Price Additional

Product     Units     Produced at Split-off after               Processing Processing Costs

X          5,000 Sh        10.00 Sh               15.00 Sh                      14,000

Y           10,000             11.60                16.20                           21,000

Z            4,000               19.40                 21.60                       12,000

Question 1: Which product(s) should proceed further and which should be sold at split off point?

Reference no: EM132516678

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