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How much is the relevant cost associated with the decision

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Reference no: EM133011342

Tarlac Corporation produces three(3) main products. Its production and costs data are given below:

                                                                                 X                        Y                         Z

Unit sales price after further processing           P300                P550              P220

Unit sales price before further processing          250                   530              190

Costs of separate(further) processing               120,000            65,000         190,000

Units produced and sold                                   2,000                4,000           7,500

Total joint costs, P1,400,000

Required: (Support your answer with computations.)

Problem 1. Which of the products should be processed further?

Problem 2. How much is the relevant cost associated with the decision of further processing products to maximize profit?

Reference no: EM133011342

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