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Solely on a relevant cost analysis

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Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products on the basis of relative sales value at the split-off point. Additional information is as follows:

X Y Z Total

Units produced 14,000 10,000 6,000 30,000

Joint costs $204,000 $90,000 $66,000 $360,000

Sales value at split-off ? 150,000 110,000 600,000

Additional costs for

further processing 38,000 30,000 22,000 90,000

Sales value if

processed further 348,000 185,000 147,000 680,000

Based solely on a relevant cost analysis, which of the three products should be manufactured by Walman beyond the split-off point?

Reference no: EM131973898

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