Illustrate should product x be processed further

Reference no: EM13121275

Q. Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing cost total $60,000 per ton, one-fourth of which is allocated to product X. Seven thousand units of product X are produced from each ton of clypton. The units can either be sold at the split-off point for $9 each, or processed further at total cost of $9,500 and then sold for $12 each.

Question:

Should product X be processed further or sold at the split-off point?

Reference no: EM13121275

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