Solution-Which of the products should be processed

Which of the products should be processed

Reference no: EM131791982

Problem

Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month follows:

	Product I	Product J	Product K
Units produced	2,200	2,700	3,700
Per unit sales value at split-off	$17	$23	$22
Added processing costs per unit	$1	$3	$3
Per unit sales value if processed further	$25	$25	$30

If the cost of the raw material input is $85,000, which of the products should be processed beyond the split-off point?

	Product I	Product J	Product K
A)	yes	yes	no
B)	yes	no	yes
C)	no	yes	no
D)	no	yes	yes

Reference no: EM131791982

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Which of the products should be processed

Reference no: EM131791982

Reference no: EM131791982

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