WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:


Product X Product Y Product Z

Units produced 1,600 2,100 3,100

Per unit sales value at split-off $ 14.00 $ 19.00 $ 16.00

Added processing costs per unit $ 5.00 $ 7.00 $ 7.00

Per unit sales value if processed further $ 20.00 $ 20.00 $ 25.00

The cost of the joint raw material input is $69,000. Which of the products should be processed beyond the split-off point?


Product X Product Y Product Z

A) yes yes no

B) yes no yes

C) no yes no

D) no yes yes

Multiple Choice


Choice A


Choice B


Choice C


Choice D